Wingstop Inc. (WING)

We still have too much food inflation.

Too risky. They don't offer the guidance he wants to hear. Shares are falling. Restaurant stocks are not doing well, because of food inflation.

They didn't provide guidance after their last report, weren't transparent. He sees the stock going down.

They reported a disappointing quarter. He used to like them, but they couldn't answer his questions when he last interviewed them.

In a time of high inflation (easing now), Wingstop kept their menu prices the same while retailers around them raised theirs. This is why Wingstop has enjoyed double-digit gains in its stock, up 65% this year.

Shares have been down along with the fast food sector ever since McDonald's cut its prices and offered its Value Package on its menu. He thinks the street is wrong. This is a buy.

Peaked in May and fell back to a degree until it reported last month when it reported better than expected same-store sales and overall higher sales (not due to higher prices, but more customers). They raised their full-year forecast. Still off its May highs, pick up some shares now.

There are fears of fast food stocks suffering a death cross, heading down, but try getting a franchise from WING. Huge demand for their food.