Wingstop (WING) Fell Amid a Reduction in Sales Momentum

Baron Funds, an investment management company, released its “Baron Discovery Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Year-to-date, the fund was up 10.75% (Institutional Shares), compared to a 11.65% return for the Russell 2000 Growth Index. The fund was up 2.85% in the third quarter, lagging behind the Index’s 12.19% return.  In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Baron Discovery 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 -8.55%, and its shares lost 15.68% of their value over the last 52 weeks.  On October 29, 2025, Wingstop Inc. (NASDAQ:WING) stock closed at $242.57 per share, with a market capitalization of $6.774 billion.

Baron Discovery Fund stated the following regarding Wingstop Inc. (NASDAQ:WING) in its third quarter 2025 investor letter:

"Wingstop Inc. (NASDAQ:WING) is a fast-casual restaurant chain known for its cooked-to-order chicken wings and wide flavor variety, operating a highly franchised model across the U.S. and abroad. Shares fell during the quarter amid softening sales momentum. While the company reported better-than-expected quarterly results over the summer, subsequent market data indicated weakening sales trends as the quarter progressed. We attribute this to a broader slowdown in industry spending that has affected Wingstop’s customer base. Despite these short-term headwinds, we maintain conviction in Wingstop’s long-term growth prospects. The company’s asset-light, franchised business model and best-in class unit economics should continue to support double-digit unit growth for the foreseeable future. We also believe Wingstop’s technology initiatives to reduce order times will drive improved sales and that the company will benefit from continued growth in marketing and brand awareness."

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 Mid Cap 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.