Wingstop Inc. (NASDAQ:WING) is a fast-casual restaurant chain known for its chicken wings. The company operates globally, offering a variety of flavors and sides. Wingstop competes with other fast-food chains like Shake Shack, Papa John’s, and Domino’s Pizza. These companies are part of the broader quick-service restaurant industry, each with unique strategies and market positions.

Wingstop’s Return on Invested Capital (ROIC) is 19.45%, while its Weighted Average Cost of Capital (WACC) is 12.95%. This results in a ROIC to WACC ratio of 1.50, indicating that Wingstop efficiently generates returns above its cost of capital. This efficiency is crucial for investors as it shows the company’s ability to create value.

In comparison, Shake Shack has a ROIC of 0.55% and a WACC of 11.48%, leading to a ROIC to WACC ratio of 0.048. This suggests that Shake Shack struggles to generate returns over its cost of capital. Papa John’s, however, has a ROIC of 19.75% and a WACC of 10.26%, resulting in a higher ROIC to WACC ratio of 1.93, showing better capital efficiency than Wingstop.

Jack in the Box stands out with a remarkable ROIC of 87.85% and a WACC of 4.70%, giving it a ROIC to WACC ratio of 18.68. This indicates exceptional efficiency in generating returns over its cost of capital, making it the leader among its peers. Domino’s Pizza also performs well with a ROIC of 54.14% and a WACC of 7.70%, resulting in a ROIC to WACC ratio of 7.03.

Planet Fitness, although not a direct competitor in the food industry, has a ROIC of 8.34% and a WACC of 11.65%, leading to a ROIC to WACC ratio of 0.72. This shows it is less efficient in generating returns over its cost of capital compared to Wingstop and other peers.