11 Best Fast Food Stocks To Invest In Right Now

5. Wingstop Inc. (NASDAQ:WING)

Number of Hedge Fund Holders: 31

Wingstop Inc. (NASDAQ:WING) is an American restaurant chain that sells chicken wings. According to CNBC, around 98% of its restaurants are operated by independent franchisees. It is one of the best fast food stocks to invest in right now, with 31 hedge funds tracked by Insider Monkey holding stakes in the company.

On October 30, Wingstop Inc. (NASDAQ:WING) announced financial results for the fiscal third quarter of 2024. Revenue totaled $162.5 million, growing 38.8% year-over-year. Royalty revenue, franchise fee, and other revenue expanded by $21.2 million in Q3, driven by same-store sales growth of 20.9% and net franchise restaurant openings since last year.

The surge in same-store sales, coupled with around 350 new restaurant openings over the last 12 months, has resulted in system-wide sales growing by 39%. Adjusted EBITDA was posted at $53.7 million, up 39.5% year-over-year. EPS was logged at 88 cents per share, translating to a 35.4% increase from the same quarter in 2023.

While talking to CNBC in late August, CEO Michael Skipworth stated that Wingstop Inc. (NASDAQ:WING) has leaned into live sports advertisements, which analysts at the business news channel believe is one of the reasons why the company is outpacing its competitors in the industry, as chicken wings remain a popular snack with watching live sports.

Moreover, through effective supply chain strategies, Wingstop Inc. (NASDAQ:WING) has also managed to control food costs despite commodity price volatility, offering brand partners predictability and strengthening unit economics. The company’s unit growth for Q3 was also an impressive 17%, helped by 100 new restaurant openings in the third quarter. It now expects to open a total of between 320 to 330 net new restaurants for the full year, offering tremendous opportunities for revenue growth ahead.

Wall Street analysts have a consensus Buy rating on the stock and anticipate a median share price upside potential of 28%.