Wingstop Inc (WING · NASDAQ)

Wingstop shares have rebounded sharply in recent sessions—up 14.4% over five days to $122.26—though the stock remains 56.8% below its 52-week high and 29.1% under its 200-day moving average. The company has beaten earnings estimates four consecutive quarters, most recently reporting $1.18 versus $1.02 expected, with sequential revenue growth to $185.6M in the June quarter and earnings up 19.8% year over year. Offsetting that momentum, leverage sits at 5.4x debt/EBITDA on $1.27B of total debt, and free cash flow was negative $11.3M last quarter as capex of $18.2M outpaced operating cash flow of $6.9M. Recent news flow is mixed, with Argus raising its target to $107—below the current price—while the new Wing Pass subscription launch and a Titleist Asset Management purchase of 8,716 shares drew somewhat bullish coverage.