Here are Factors that Drove Wingstop (WING) to a Better-Than-Expected Revenue

Fred Alger Management, an investment management company, released its “Alger Small Cap Growth Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. US equities rose in Q1 in anticipation of a soft landing. Corporate earnings added another boost to the soft-landing narrative. Class A shares of the fund outperformed the Russell 2000 Growth Index during the quarter. The consumer discretionary and consumer staples sectors contributed to the fund’s relative performance in the quarter, while information technology and industrials detracted from performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Alger Small Cap Growth Fund highlighted stocks like Wingstop Inc. (NASDAQ:WING) in the first quarter 2024 investor letter. 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 -3.00%, and its shares gained 99.49% of their value over the last 52 weeks. On June 6, 2024, Wingstop Inc. (NASDAQ:WING) stock closed at $385.84 per share with a market capitalization of $11.332 billion.

Alger Small Cap Growth Fund stated the following regarding Wingstop Inc. (NASDAQ:WING) in its first quarter 2024 investor letter:

"Wingstop Inc. (NASDAQ:WING) is a high-growth franchisor and operator of cooked-to-order fried chicken wings with over 20 different sauces that consumers have grown to love. The company operates just over 2000 of its namesake stores around the globe, with the majority of those in the U.S. Shares contributed to performance during the quarter after the company reported strong fiscal fourth quarter results. The company reported better-than-expected revenues which were driven by several factors, including effective advertising, menu innovation such as its new chicken sandwich launch, and strong delivery service partnerships. Additionally, the company continues to enhance brand awareness through digital marketing initiatives and plans to introduce new Al-driven personalized marketing tools in the second quarter of 2024."

Customers savoring boneless wings at a bustling restaurant owned by the company.

Wingstop Inc. (NASDAQ:WING) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Wingstop Inc. (NASDAQ:WING) at the end of the first quarter which was 32 in the previous quarter. In the first quarter, Wingstop Inc (NASDAQ:WING) reported $145.8 million in revenues, up 34.1% compared to the fiscal first quarter of 2023. While we acknowledge the potential of Wingstop Inc. (NASDAQ:WING) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Wingstop Inc. (NASDAQ:WING) and shared Carillon Eagle Small Cap Growth Fund's views on the company. Wingstop Inc. (NASDAQ:WING) was one of the top contributors of Polen U.S. Small Company Growth Strategy for the first quarter 2024. In addition, please check out our hedge fund investor letters Q1 2024 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.