Polen U.S SMID Company Growth Strategy Reinitiated its Position in Wingstop (WING)?

Polen Capital, an investment management company, released its “Polen US SMID Company Growth Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The initial market optimism after the Presidential election gave way to fear and uncertainty in the first quarter of 2025. Against this backdrop, the fund returned -12.38% gross, and -12.65% net of fees compared to the Russell 2500 Growth Index return of -10.80%. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its first-quarter 2025 investor letter, Polen US SMID Company Growth Strategy highlighted stocks such as Wingstop Inc. (NASDAQ:WING). Wingstop Inc. (NASDAQ:WING) is a restaurant company that operates under the brand name Wingstop. The one-month return of Wingstop Inc. (NASDAQ:WING) was 40.20%, and its shares lost 2.34% of their value over the last 52 weeks.  On May 16, 2025, Wingstop Inc. (NASDAQ:WING) stock closed at $374.82 per share with a market capitalization of $10.46 billion.

Polen US SMID Company Growth Strategy stated the following regarding Wingstop Inc. (NASDAQ:WING) in its Q1 2025 investor letter:

“During the quarter, we added five new positions in SAIA, Construction Partners, Comfort Systems USA, Wingstop Inc. (NASDAQ:WING), and Manhattan Associates. We also added to several existing positions.

We re-initiated a position in Wingstop, a unique quick-service restaurant brand with exceptional unit economics and a long runway for growth. Wingstop’s light asset model, combined with its ability to scale internationally, reinforces its attractiveness. We believe its focus on digital innovation and solid customer loyalty will support earnings growth for into the future. The stock has pulled back considerably, and we consider it attractive again.”

Was Jim Cramer Right About Wingstop Inc. (WING)?

Customers savoring boneless wings at a bustling restaurant owned by the company.

Wingstop Inc. (NASDAQ:WING) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Wingstop Inc. (NASDAQ:WING) at the end of the first quarter, compared to 36 in the previous quarter. In the first quarter of 2025, Wingstop Inc.’s (NASDAQ:WING) revenue grew 17.4% year-over-year reaching $171 million. While we acknowledge the potential of Wingstop Inc. (NASDAQ:WING) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Wingstop Inc. (NASDAQ:WING) and shared Baron Discovery Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.