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Cowen dived into the implications of Wingstop (WING -4.0%) finishing a $250M securitization transaction and saying a particular dividend of $4 per share that fell beneath some expectations.
Analyst Andrew Charles and staff have been stunned that the restaurant operator is including ~$130M of unrestricted money to the stability sheet for an asset-light, free money circulation generative enterprise mannequin. The very best guess from the agency is that it is going to be used for share repurchases and potential investments in worldwide markets or additional funding for the tech stack venture.
Cowen lowered its 2022 EPS estimate on WING to $1.43 and dropped its 2023 EPS estimate to $1.93 following the developments. The agency stored its Purchase score on WING in place.
Cowen’s bull thesis on WING: “We like Wingstop as a domestic-focused story, with sturdy “omni-channel” digital penetration for pick-up and third-party supply that differentiates the inventory vs different smid-cap eating places. We just like the symbiotic similar retailer gross sales drivers WING is implementing to enhance the corporate’s model consciousness and digital penetration, that we imagine will result in upside to gross sales estimates and justify a number of growth.”
Dig into Wingstop’s full dividend historical past.
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