Here's What Pressured Wingstop (WING) in Q3

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Mid Cap Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the equity markets continued their rally, fueled by enthusiasm for AI, limited evidence of inflationary effects from tariffs, and expectations for further interest rate cuts from the U.S. Federal Reserve. Mid-cap stocks also maintained their positive gains during the quarter. The Russell Midcap Growth Index (up 2.78%) underperformed the Russell Midcap® Value Index (up 6.16%) in the quarter. The letter further shared the firm's detailed views on Cyclicals, Healthcare, Information Technology, Financials, and Consumer sectors. 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, Carillon Eagle Mid Cap 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 -1.87%, and its shares lost 28.35% of their value over the last 52 weeks. On November 24, 2025, Wingstop Inc. (NASDAQ:WING) stock closed at $242.73 per share, with a market capitalization of $6.778 billion.

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

"Wingstop Inc. (NASDAQ:WING) is a franchisor and restaurant operator that specializes in cooked-to-order chicken wings in a fast-casual setting. The stock declined as its core lower-income consumer base remained under pressure. Against this backdrop, investors now expect a weaker upcoming quarterly report and a longer path before the company returns to positive comparable store sales."

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 in the third quarter increased 8.1% year-over-year to $175.7 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 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.