Sell Wingstop (WING)
We’re taking another incremental step to focus our portfolio today by selling Wingstop (WING). While the stock’s selloff makes it seem like a bargain in the quick serve restaurant market, the trends suggest many fewer people eating out for a lot longer than I think the market is factoring in. While this will likely inspire a quicker transition to online orders for Wingstop, I think significant business disruption is still likely over the next two quarters and I’m dubious delivery volumes can make up for lost in-restaurant dining. If you can hang on for the long-term I think WING will ultimately be OK once things get back to normal (whatever that will look like after this), but for us, relative to other opportunities right now, I like the stock on a watch list more than in a portfolio. SELL