Shares of the Dallas company at last check were rising 5.4% to $134.
Wingstop's first-quarter systemwide sales increased 30% from a year earlier to about $558.9 million. Digital sales soared 64%, compared with 43% a year ago.
Many restaurants saw a boost in digital sales as the COVID-19 pandemic forced businesses to close or severely limited seating and people ordered from home.
Domestic same-store sales increased 20.7%, while company-owned restaurant same-store sales increased 13.4%.
Wells Fargo analyst Jon Tower raised his price target on Wingstop to $177 from $172 while affirming an overweight rating.
The analyst said in a research note that Wingstop's results serve as an “encouraging data point that a COVID ‘winner’ does not need to be a reopening ‘loser.'"
Piper Sandler analyst Nicole Miller Reagan, who has a $150 price target and an overweight rating on the company, said "Wingstop remains a priority pick for 2021."
Reagan noted the brand's "strong fundamentals and best-in-class human capital focus, which are both powerful and aligned with our thematic framework."
Andrew Charles, an analyst with Cowen, found "a lot to like" in the preliminary sales results. He added that Wingstop has "shown impressive traction with digital ordering."
"We like Wingstop as a domestic-focused story, with robust "omnichannel" digital penetration for pickup and third-party delivery that positions the brand favorably in both a faster or slower reopening narrative," Charles said. He has an outperform rating and a $150 price target on Wingstop.
Oppenheimer analyst Michael Tamas, who rates the stock perform, said the results highlight "the power of WING's digital platform, best-in-class unit economics and long-term growth profile."
"Near-term sales could become more choppy against tougher second-quarter comparisons, but this already appears well understood," he said. "Overall, we believe management has the firepower to at least achieve [Wall] Street's +4.8% same-store-sales estimate for 2021."