Wingstop (WING) has been cooking up some solid results for investors to chew on since its initial public offering in June. Now at over 800 restaurants, the up and coming wing joint is on track to achieve its twelfth straight year of same-store sales increases. That is no small feat in the ultra-competitive fast- food business. Third quarter domestic same-store sales rose 6.3% year over year, while net profits excluding one-time items improved 25%. Although sales and profits have come in meaty for Wingstop and several other emerging restaurants that have conducted IPOs recently, shares of the entire group have come under considerable selling pressure. Shares of Wingstop have shed about 32% from their June 12 closing price on the day of its IPO. Shake Shack (SHAK), which debuted on the New York Stock Exchange in late January, has seen its stock plunge by 54% from its 52-week high in May. Fogo De Chao (FOGO), which like Wingstop went public in June, has lost roughly 42% from its high achieved that month. Asked if a bubble has burst in the market for emerging restaurant chains, Wingstop’s CEO stressed the company is delivering where it has to – consistent same-store sales growth and about 120 new restaurant openings for the year. TheStreet’s Brian Sozzi reports from New York City.
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