Wingstop vs KFC Which Is More Lucrative?

Wingstop and KFC are two popular fast-food chains known for their fried chicken offerings. Both companies have been publicly traded on the stock market, with investors comparing their performance and potential for growth. Wingstop has been a standout performer in recent years, with consistent sales growth and expansion plans. On the other hand, KFC, a subsidiary of Yum! Brands, has a long-standing reputation in the industry but has faced challenges in adapting to changing consumer preferences. Investors closely monitor both stocks to assess their financial health and market prospects.

Wingstop or KFC?

When comparing Wingstop and KFC, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Wingstop and KFC.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Wingstop has a dividend yield of 0.33%, while KFC has a dividend yield of 4.78%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Wingstop reports a 5-year dividend growth of -33.98% year and a payout ratio of 27.24%. On the other hand, KFC reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Wingstop P/E ratio at 87.50 and KFC's P/E ratio at 9.86. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Wingstop P/B ratio is -19.71 while KFC's P/B ratio is 0.46.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Wingstop has seen a 5-year revenue growth of 1.95%, while KFC's is 0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Wingstop's ROE at -22.69% and KFC's ROE at 4.62%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $301.10 for Wingstop and ¥1241.00 for KFC. Over the past year, Wingstop's prices ranged from $241.78 to $433.86, with a yearly change of 79.44%. KFC's prices fluctuated between ¥1176.00 and ¥1606.00, with a yearly change of 36.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.