Wingstop Inc. (WING): Among the High Growth Restaurant Stocks for 2025

We recently compiled a list of the 10 High Growth Restaurant Stocks For 2025. In this article, we are going to take a look at where Wingstop Inc. (NASDAQ:WING) stands against the other high growth restaurant stocks.

Morgan Stanley recently published a report on the restaurant industry, suggesting that the tough environment that the industry is currently facing may ease out in 2025, though only modestly. Restaurants will have to continue working on providing value meals to consumers who continue to struggle to balance their income and expenses.

A balanced job market could help keep labor costs steady. However, a political campaign against immigration could be a potential headwind for the industry. A growing emphasis on robotics to improve efficiency and customer service could also play a key role in the industry’s development this year, though it is too early to determine the financial implications of these moves.

We decided to shortlist a few stocks that we believe could benefit from an improving industry environment in 2025. To come up with the list of 10 restaurant stocks with a high growth rate, we only considered stocks that have grown by more than 15% in the last 5 years or since IPO and have a market cap of at least $1 billion.

Wingstop Inc. (WING): Jim Criticized Management for Falling Short – Here’s Why

Customers savoring boneless wings at a bustling restaurant owned by the company.

Wingstop Inc. (NASDAQ:WING)

Wingstop Inc. runs and owns a restaurant chain under the Wingston brand that serves tenders, boneless wings, chicken sandwiches with fries, classic wings, and other dishes. The restaurant chain’s sales have grown at a staggering 23% in the last 5 years, tripling the stock value despite the recent 35% correction. It is this correction that makes the stock an impressive investment at the current levels as well.

If analyst ratings are anything to go by, the stock might have bottomed out. Barclays upgraded the stock earlier this month while Morgan Stanley also boosted its rating just a few days ago. Morgan Stanley has a price target of $389 on the stock, which is a 39.4% upside from current levels.

Overall WING ranks 9th on our list of the high growth restaurant stocks for 2025. While we acknowledge the potential of WING as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as WING but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.