5 Junior Growth Stocks Jim Cramer is Talking About

In this article, we will be taking a look at 5 junior growth stocks Jim Cramer is talking about. If you want to explore similar stocks, you can take a look at 10 Junior Growth Stocks Jim Cramer is Talking About.

5. Wingstop Inc. (NASDAQ:WING)

Number of Hedge Fund Holders: 27

According to Cramer, if the “economics of franchising” and special dividends attract any investor, they should consider buying Wingstop Inc. (NASDAQ:WING), a company that makes enough money to harness true growth potential.

Nick Setyan, an analyst at Wedbush, holds an Outperform rating on Wingstop Inc. (NASDAQ:WING).

About 27 hedge funds disclosed holding stakes in Wingstop Inc. (NASDAQ:WING) in the first quarter. Their total stake value was $328 million.

Artisan Partners, an investment management company, said this about Wingstop Inc. (NASDAQ:WING) in its first-quarter 2023 investor letter:

“Wingstop Inc. (NASDAQ:WING) is a quick-service restaurant franchisor specializing in fresh, cooked-to-order chicken products including wings, sandwiches and side orders. The company is in the early stages of growing its store footprint domestically and internationally, which we believe is supported by attractive economics for franchisees and growing brand awareness in new and existing markets. Fourth quarter earnings results showed continued momentum for the company. Strong same-store sales momentum is being driven by the combined impact of several factors, including menu innovation, national branding efforts, integration of a second delivery provider (Uber Eats) and an ongoing value-based bundling strategy. Furthermore, this same-store sales increase was entirely traffic driven (rather than by rising prices), which stands in stark contrast to its competitors that have taken upward of double-digit pricing in some cases. Meanwhile, we continue to be optimistic about new store expansion potential in the periods ahead as strong unit-level returns are driving payback periods for the company’s “brand partners” (i.e., franchisees) that are less than two years.”