Wendy's (WEN) Gears Up for Q4 Earnings: What's in Store?
The Wendy's Company WEN is scheduled to report fourth-quarter 2023 results on Feb 15 before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 3.9%.
Q4 Estimates
The Zacks Consensus Estimate for earnings is pegged at 23 cents per share, indicating an increase of 4.6% from a year ago.
The consensus mark for revenues is pegged at $546.6 million, suggesting an improvement of 1.9% from the year-ago quarter.
Factors to Note
Wendy's fourth-quarter performance is likely to have been driven by heightened attention to menu innovation, technological enhancements and expansion into international markets. The company's emphasis on breakfast offerings is likely to have played a role in driving growth. Additionally, it has been capitalizing on marketing strategies, quality menu offerings, consistent repeat business and strong customer satisfaction to further bolster its performance.
Robust global same-restaurant sales growth is likely to be reflected in the to-be-reported quarter’s results. Increased customer counts and higher average checks are likely to have driven the company’s margin. Our model predicts total U.S. systemwide same-restaurant sales and International systemwide same-restaurant sales to increase 1% and 4.9% from the prior-year levels, respectively.
On the other hand, we expect total U.S. sales and International sales to rise 1.6% and 18.7% from the year-earlier levels, respectively. However, inflationary pressures are likely to have weighed on the bottom line in the quarter under discussion. Our model predicts total costs and expenses to increase 1.8% from the year-ago levels to $460.6 million.
The Wendy's Company Price and EPS Surprise
The Wendy's Company price-eps-surprise | The Wendy's Company Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Wendy’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for WEN is -2.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: WEN currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Dave & Buster's Entertainment, Inc. PLAY has an Earnings ESP of +3.51% and a Zacks Rank of 2.
PLAY’s earnings for the quarter under review are expected to increase 42.5% year over year. It reported better-than-expected earnings in three of the trailing four quarters and in line on the remaining one occasion, the average surprise being 34.5%.
Darden Restaurants, Inc. DRI has an Earnings ESP of +1.11% and a Zacks Rank of 2.
DRI's to-be-reported quarter's earnings are expected to register 12.8% growth from the year-ago levels. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 4.2%.
Jack in the Box Inc. JACK has an Earnings ESP of +1.40% and a Zacks Rank of 3.
JACK’s earnings for the to-be-reported quarter are expected to decline 3% year over year. It reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining one occasion, the average surprise being 10.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Janus Henderson Sustainable & Impact Core Bond ETF (JACK) : Free Stock Analysis Report
Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report
The Wendy's Company (WEN) : Free Stock Analysis Report
Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
