Jim Cramer Recently Shed Light on These 9 Stocks

3. Wingstop Inc. (NASDAQ:WING)

Number of Hedge Fund Holders: 39

Cramer showed disgruntlement toward Wingstop Inc. (NASDAQ:WING) as he pointed out that management did not give him any reason to hold onto the stock.

“Wingstop, when they reported last did not give me an explanation about why they didn’t do well and so therefore I went off on them. Now I have to tell you, I don’t personally dislike them. I have liked the product. But when you come on the show, when you talk good, you know, and say good things and I say good things about you and then you don’t give me the information I needed to say why I should continue to like you, then I have to turn on you. It’s just what I do.”

Wingstop (NASDAQ:WING) is a restaurant chain known for its specialty in serving classic and boneless wings, tenders, and chicken sandwiches. In November 2024, Cramer criticized the company’s management for failing to acknowledge a significant earnings shortfall during its third-quarter earnings call. He said:

“Wingstop dwelled on the good, not blowout, same-store sales and didn’t even mention the out and out earnings shortfall. 88 cents, looking for 96.”

Cramer noted that Wall Street dislikes not only big misses but also when management tries to downplay them, which led to Wingstop’s stock drop. It should be noted that the company reaffirmed its guidance for the fiscal year 2024, predicting around 20% growth in domestic same-store sales.

Wingstop (NASDAQ:WING) also updated its projected SG&A expenses, now expecting them to fall between $117.5 million and $118.5 million, compared to its earlier estimate of $114 million to $116 million. Furthermore, it revised its depreciation and amortization estimate to approximately $19 million, slightly higher than the initial range of $18 million to $19 million.