According to the Zhitong Finance APP, Wall Street financial giant Jefferies recently upgraded its stock rating for American fast-casual restaurant chain Wingstop (WING.US) from &#34;Hold&#34; to &#34;Buy,&#34; the most bullish rating level, while maintaining a target price of up to $270, indicating a potential upside of 22% within the next 12 months.
As the U.S. stock market experiences extreme volatility with intraday fluctuations exceeding 10% due to Trump's aggressive tariff policies, and the S&amp;P 500 index potentially entering a long-term bear market, Jefferies has issued a bullish report on the restaurant chain Wingstop. Focusing on significantly improving operational efficiency and profits with its &#34;AI + Kitchen&#34; strategy, the American chain Wingstop is expected to demonstrate &#34;defensive attributes&#34; and may even become a &#34;safe haven&#34; in the stock market amid the severe turbulence and pessimistic scenarios of a long-term bear market.
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Wingstop Actively Tests AI-Driven Kitchen System, Jefferies Issues Bullish Report on the Company
It is noteworthy that Wingstop is considered a heavily held stock among hedge funds based on their position indicators. The reason for focusing on hedge fund targets is simple: research shows that mimicking the stock selection strategies of top hedge funds can significantly outperform the market. As for Wingstop Inc., the latest holdings statistics as of the fourth quarter of 2024 show that there are as many as 36 hedge funds holding the stock.
Wingstop is an American casual fast-food chain specializing in made-to-order flavored chicken wings, operating under a global franchise model. The company is currently conducting large-scale tests of an AI-based kitchen operations platform to enhance service efficiency and simplify employee workflows, while also aiming to significantly boost operating profits.
Analyst Andy Barish from Jefferies recently upgraded Wingstop's stock rating from &#34;Hold&#34; to &#34;Buy,&#34; while maintaining a target price of $270. As of Tuesday's market close, Wingstop's stock price was $221.710.
Jefferies analyst Barish pointed out that the current stock price is in a severely oversold area and that the valuation is &#34;excessively discounted&#34; given the company's above-peer same-store sales growth and adjusted EBITDA growth rate. The investment bank believes that the stock market has fully digested the expectations of a slowdown in same-store sales in the U.S. market under the heavy pressure of Trump’s tariffs, while overlooking its traffic advantages and low double-digit same-store sales growth. Jefferies also emphasized that the overall visibility of same-store sales is improving, and new profit expansion drivers such as the kitchen AI system may lead to unexpected performance in 2025 and beyond.
It is understood that Wingstop is a U.S. fast-casual restaurant chain focused on flavored chicken wings, founded in 1994 and headquartered in Garland, Texas. Wingstop primarily offers classic wings, boneless wings, chicken tenders, and fried chicken sandwiches, with dozens of unique flavors for customers to choose from.
Wingstop is currently focused on advancing its cutting-edge technology strategy of &#34;AI + Kitchen.&#34; The company is piloting a comprehensive AI-based fully automated kitchen operations platform aimed at speeding up service, enhancing customer ordering efficiency, and significantly simplifying the workflows of back-of-house employees. As of February 2025, Wingstop has 30 restaurants participating in the trial of this AI kitchen platform, some of which have been in operation for over a year, with plans to further expand to more physical locations in 2025.
Wingstop CEO Michael Skipworth stated that the new kitchen operations platform based on &#34;AI + Kitchen&#34; will significantly reduce order preparation times to meet customers' expectations for quick service. Additionally, the platform uses visual prompts and gamification elements to enhance employee engagement, which is expected to improve employee productivity

Amidst the severe turbulence in the US stock market, Jefferies upgraded Wingstop's stock rating from "Hold" to "Buy," with a target price of $270, indicating a potential upside of 22%. Wingstop is enhancing operational efficiency through its "AI + Kitchen" strategy, which may position it as a "safe haven" in the market

- Jefferies has upgraded its rating for Wingstop from "Hold" to "Buy," setting a target price of $270, indicating a potential upside of 22% within the next 12 months.  
- Amid market volatility due to aggressive tariff policies, Wingstop's focus on an "AI + Kitchen" strategy aims to enhance operational efficiency and profitability, positioning it as a potential safe haven in a bearish market.  
- The company is actively testing AI-driven kitchen systems to improve service speed and employee workflow, with plans to expand this technology across more locations in 2025.

Zhitong

Jefferies Financial

Amidst the severe turbulence in the US stock market, this American chain restaurant focusing on "AI + Kitchen" is expected to become a "safe haven."