Wingstop's New Facility Should Accelerate Buybacks -- Market Talk

Dow Jones03:08

1407 ET - Wingstop's $500 million facility with Morgan Stanley and Barclays sets the stage for an incremental return of capital to shareholders, Baird analysts say in a research note. These returns will most likely be in the form of an accelerated share-repurchase program. The transaction, expected to close Dec. 3, will greatly increase the restaurant chain's cash balance, analysts say. At the same time, the company will likely realize about $30 million of additional annual interest expense on a go-forward basis, potentially dinging earnings. All in, though, "the addition of debt and anticipated reduction to shares outstanding should serve to reduce the company's overall cost of capital, and lead to longer-term accretion for shareholders," the analysts write. (connor.hart@wsj.com)

(END) Dow Jones Newswires

November 21, 2024 14:08 ET (19:08 GMT)

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These returns ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4581","symbol_name":"高盛持仓","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2485144907","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2485144907","pubTimestamp":1732216080,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"1407 ET - Wingstop's $500 million facility with Morgan Stanley and Barclays sets the stage for an incremental return of capital to shareholders, Baird analysts say in a research note. These returns will most likely be in the form of an accelerated share-repurchase program. The transaction, expected to close Dec. 3, will greatly increase the restaurant chain's cash balance, analysts say. At the same time, the company will likely realize about $30 million of additional annual interest expense on a go-forward basis, potentially dinging earnings. All in, though, \"the addition of debt and anticipated reduction to shares outstanding should serve to reduce the company's overall cost of capital, and lead to longer-term accretion for shareholders,\" the analysts write. 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These returns will most likely be in the form of an accelerated share-repurchase program. The transaction, expected to close Dec. 3, will greatly increase the restaurant chain's cash balance, analysts say. At the same time, the company will likely realize about $30 million of additional annual interest expense on a go-forward basis, potentially dinging earnings. All in, though, \"the addition of debt and anticipated reduction to shares outstanding should serve to reduce the company's overall cost of capital, and lead to longer-term accretion for shareholders,\" the analysts write. 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