Solid Results Lifted Wingstop (WING) in Q2

Wasatch Global Investors, an asset management company, released its “Wasatch Core Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund was down 5.57% in the quarter, outperforming the benchmark, the Russell 2000 Growth Index was up 11.97% return. Small-cap stocks ended the quarter with gains, amid volatility. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Wasatch Core Growth 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 -5.16%, and its shares lost 16.08% of their value over the last 52 weeks.  On September 02, 2025, Wingstop Inc. (NASDAQ:WING) stock closed at $318.61 per share, with a market capitalization of $8.897 billion.

Wasatch Core Growth Fund stated the following regarding Wingstop Inc. (NASDAQ:WING) in its second quarter 2025 investor letter:

"Another top contributor for the Fund was Wingstop Inc. (NASDAQ:WING). The firm operates and franchises a network of more than 2,500 fast-casual restaurants, specializing in cooked-to-order, hand-sauced and tossed chicken wings. Wingstop released what we considered to be a solid set of operating results when it reported earnings in late April. The stock rose on the back of those results. We like Wingstop for its highly profitable franchising model, which generates significant revenue from royalties and franchise fees. We also like the potential of Wingstop’s new AI driven kitchens, which use data to forecast the demand for wings. By forecasting demand early, wings can be prepared sooner, increasing throughput at the store and driving higher average unit volumes (AUVs). Wingstop is trying these new kitchens in test markets and the results have been encouraging. (Current and future holdings are subject to change and risk.)"

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 potential of Wingstop Inc. (NASDAQ:WING) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Wingstop Inc. (NASDAQ:WING) and shared Artisan Small Cap Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 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.