Wingstop (WING) Declined Due to Sofer Spending Trends

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy reported modest gains in the challenging environment, driven by monetary policy shifts, stabilizing earnings, and improving investor sentiment.  However, the strategy outperformed the Russell Midcap Growth Index, which returned 2.8%. The firm believes that the Strategy is well-positioned to benefit from its fundamental, bottom-up philosophy even though near-term volatility exists. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, ClearBridge Mid Cap 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 -9.35%, and its shares lost 36.96% of their value over the last 52 weeks.  On October 8, 2025, Wingstop Inc. (NASDAQ:WING) stock closed at $249.01 per share, with a market capitalization of $6.953 billion.

ClearBridge Mid Cap Growth Strategy stated the following regarding Wingstop Inc. (NASDAQ:WING) in its third quarter 2025 investor letter:

“Our holdings in the consumer discretionary sector weighed on performance, and particularly our restaurant holdings, which saw increased concerns over consumer spending. Wingstop Inc. (NASDAQ:WING) also declined as real-time spending data has pointed to softer third-quarter spending trends.”

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

Wingstop Inc. (NASDAQ:WING) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Wingstop Inc. (NASDAQ:WING) at the end of the second quarter, which was 39 in the previous quarter. Wingstop Inc.’s (NASDAQ:WING) total revenue increased 12% in the second quarter to $174.3 million. While we acknowledge the risk and potential of Wingstop Inc. (NASDAQ:WING) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Wingstop Inc. (NASDAQ:WING) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Wingstop Inc. (NASDAQ:WING) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q3 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.