Where's The Beef? A Look Inside Wendy's Q3
Wendys Co (NASDAQ: WEN) reported its third-quarter results which consisted of a top and bottom line miss. Management also revised its full year earnings per share outlook lower from a range of 45 cents to 47 cents per share to a new range of 43 cents and 45 cents per share.
The Analyst
Stephens' Will Slabaugh.
The Rating
Slabaugh maintains an Overweight rating on Wendys' stock with an unchanged $18 price target.
The Thesis
Although Wendys' earnings fell short of what Wall Street was modeling, the company is still showing "top-line consistency," Slabaugh said in a report. Specifically, Wendys' report marks the 19th consecutive quarter of positive comps in the North American segment. The ongoing momentum in the North American segment could be attributed to success in menu innovation, including the Giant JBC $5 Meal and ongoing brand marketing initiatives.
Looking forward to the fourth quarter, the restaurant company's guidance implies a 1 percent to 3 percent comp increase and the analyst noted he will be "looking for any color" on what will drive the gains.
Price Action
Shares of Wendys were trading lower by 7 percent at $13.61 ahead of Wednesday's opening bell.
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Channel Checks Suggest Strong Sales At Wendy's
Image credit: Mike Mozart, Flickr
Latest Ratings for WEN
Oct 2017 | Stifel Nicolaus | Initiates Coverage On | Buy | |
Sep 2017 | Longbow Research | Upgrades | Neutral | Buy |
May 2017 | Stephens & Co. | Maintains | Overweight |
View More Analyst Ratings for WEN
View the Latest Analyst Ratings
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