12 Best Fast Food Stocks to Buy Now

6. Wingstop Inc. (NASDAQ:WING)

Number of Hedge Fund Holders: 36

Wingstop Inc. (NASDAQ:WING) is a rapidly expanding restaurant chain with over 2,550 locations that operates on a franchise basis with a $10,000 initial deposit per outlet. One of its main points of differentiation is its dedication to using fresh food preparation methods, eliminating heat lamps, and making sure that everything is prepared on-site, including sandwiches and hand-diced carrots. The business intends to open 4,000 outlets abroad and 6,000 in the United States as part of its ambitious expansion plans.

In terms of financial efficiency, Wingstop Inc. (NASDAQ:WING) outperforms several of its competitors on the basis of return on capital. Often viewed as a rival to McDonald’s, competitors such as Shake Shack are far less effective.

The company’s fiscal 2024 financials set a new record, marking the 21st straight year that same-store sales had grown and making it one of the Best Food Stocks. Domestic same-store sales rose 19.9%, primarily due to transaction growth, while system-wide sales rose 36.8% to $4.8 billion. Additionally, it reported an adjusted EBITDA of $212 million, a 44.8% rise. Wingstop Inc. (NASDAQ:WING) showed strong franchisee demand by adding a record 349 restaurant sites to its portfolio in 2024, achieving its goal of exceeding 10,000 units.

As it maintained its excellent momentum, the firm recorded a 10.1% increase in same-store sales for Q4 and a 70% increase in digital sales. My Wingstop, the company’s in-house IT stack, played a significant role in boosting interaction and expanding its digital database to more than 50 million clients. Furthermore, Wingstop Inc. (NASDAQ:WING) saw an increase in brand awareness and reach among younger consumers as a result of its strategic alliances with the NFL, NBA, and WWE.