Wingstop (WING) Trades Down Due to Concerns of Softer Sales Trends

Fred Alger Management, an investment management company, released its “Alger Small Cap Focus Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets continued their upward trajectory in the third quarter with the S&P 500 Index rising 8.12%. A combination of improving economic conditions, solid corporate earnings, and growing expectations for monetary easing propelled the robust equity market. Against this backdrop, the class A shares of the fund underperformed the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Alger Small Cap Focus Fund 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 6.80%, and its shares lost 21.79% of their value over the last 52 weeks. On November 27, 2025, Wingstop Inc. (NASDAQ:WING) stock closed at $259.08 per share, with a market capitalization of $7.234 billion.

Alger Small Cap Focus Fund stated the following regarding Wingstop Inc. (NASDAQ:WING) in its third quarter 2025 investor letter:

“Wingstop Inc. (NASDAQ:WING) is a global restaurant brand best known for its cooked to-order, hand-sauced chicken wings. The company operates just over 2,000 locations worldwide, with most in the United States. Wingstop delivered strong fiscal second-quarter results, exceeding expectations despite facing tough comparisons from prior years. Sales momentum was supported by several factors, including new menu offerings, increased marketing, and continued growth in digital ordering, all of which have boosted brand awareness and profitability. However, shares declined later in the quarter following reports of softer sales trends, as the restaurant industry has experienced a growth slowdown due to broad based consumer price aversion and a rotation towards food-at-home. Despite the near-term industry slowdown, we continue to view Wingstop favorably for its long-term growth potential and near-term catalysts, including the rollout of Smart Kitchen initiatives and an enhanced loyalty program.”

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, 39 hedge fund portfolios held Wingstop Inc. (NASDAQ:WING) at the end of the third quarter, which was 47 in the previous quarter. Wingstop Inc.’s (NASDAQ:WING) total revenue in the third quarter increased 8.1% year-over-year to $175.7 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 Carillon Eagle Mid Cap Growth Fund’s views on the company. 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.