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Goldman makes Wingstop one of its favorite stocks because digital ordering will drive sales

Key Points
  • Goldman Sachs recommends Wingstop shares because the rise of mobile smartphone ordering will lead to sales growth.
  • The firm reiterates its $36 price target for the restaurant chain, representing 21 percent upside from Monday's close.
Source: Wingstop

Investors should buy Wingstop shares because the rise of mobile ordering will lead to better sales growth, according to Goldman Sachs, which reiterated its buy rating and added the firm to its Americas conviction buy list.

Wingstop "shares can benefit from a growing scarcity of strong growth stories in restaurants, view off-premise [take-out and delivery] occasions and digital ordering as secular trends for which WING is well-positioned, and expect accelerating same store sales on the back of the February national advertising launch," analyst Karen Holthouse wrote in a note to clients Tuesday.