WING – Market expectations are for WING to succeed in franchising, and drive record-high Uniform ROA, but management has concerns about initiatives, costs, and growth

• Wingstop Inc. (WING:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 51.0x Uniform P/E, suggesting bullish expectations for the firm. However, management has concerns about initiatives, costs, and growth
• Specifically, although management is confident in their continued best-in-class type of growth going into 2018, they appear to be concerned about their ability to sustain improvements in food costs as well as the sustainability of strong top-line results. Moreover, they might be concerned about their ability to maintain the pace of net new restaurant opens, and might have concerns about their ability to meet adjusted EBITDA targets. Finally, they may be exaggerating initial results related to their split menu, and may be concerned about the sustainability of growth in their digital sales mix