Steadfast Capital Management LP increased its stake in Wingstop Inc. by purchasing 710,621 shares, raising its total holding to 950,521 shares. The transaction, disclosed on November 14, 2025, represents 4.2 % of the hedge fund’s reportable U.S. equity assets.
The move follows Wingstop’s Q3 2025 earnings release on November 4, 2025, which reported revenue up 8.1 % to $175.7 million, net income up 10.7 % to $28.5 million, and adjusted EBITDA up 18.6 % to $63.7 million. The company opened 114 net new restaurants—a 19.3 % unit growth—and digital sales accounted for 72.8 % of system‑wide sales.
Revenue growth was driven by strong unit expansion and the continued acceleration of digital sales, while domestic same‑store sales fell 5.6 % amid intensified competition. The Smart Kitchen AI system, deployed in a growing number of locations, has reduced ticket times by 40 % and is expected to support operational efficiency and margin expansion.
Steadfast’s increased stake signals confidence in Wingstop’s franchise‑led expansion and technology initiatives. With 98 % of its restaurants franchised, Wingstop can scale rapidly with limited capital outlay, and the company’s investment in the Smart Kitchen system is positioned to enhance speed and guest experience, reinforcing the business model’s long‑term viability.
CEO Michael Skipworth noted that the Smart Kitchen system delivers faster service and higher sales without additional advertising, and that unit growth remains a priority as the company targets 475–485 net new restaurants for 2025.
The stake increase positions Steadfast as one of Wingstop’s largest institutional investors, potentially enhancing its influence over governance. The investment comes at a time when Wingstop is balancing strong unit growth with headwinds in same‑store sales, but its technology investments and franchise model provide a foundation for continued expansion.
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