It has been a long year for chicken wing chain restaurant Wingstop (NASDAQ: WING). Its stock price is down 62% over the past year, and it is trading not just at a 52-week low but at a four-year low of around $122 per share. But is the sell-off finally over?
It may be, as Wingstopʻs stock price soared 8% on Aug. 14 -- one of its best days this year. This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Aug. 14 was the date of record for its third-quarter dividend, payable on Sept. 5. That led to a surge of interest and may signal that Wingstop is starting to rebound.
Investors were buying in to qualify for the $ 0.33-per-share dividend payout, up from $0.30 last quarter. But beyond that, investors were looking to buy at a reduced valuation as Wingstop's P/E ratio is down to 27, from almost 43 in June. Wingstop stock has been a solid performer over the years, with an average annualized return of about 16% over the past 10 years, beating the S&P 500.
However, the past few years have been difficult for Wingstop after a huge post-COVID-19 surge. The expansion that followed the surge was derailed by high inflation, higher costs, lower foot traffic, and massive debt for the fast food stock. At the same time, Wingstop was way too expensive with a P/E ratio of over 100 in 2023 and 2024.
Even as recently as June 2025, it was trading at 57 times earnings. It was all a recipe for a crash. Wingstop is still seeing declining same-store sales.
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