The Wendy’s Stock Rating Lowered by Zacks (WEN)
The Wendy’s (NYSE:WEN) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a research report issued on Monday, American Banking and Market News reports. They currently have a $9.00 target price on the stock. Zacks‘ price objective would suggest a potential upside of 5.26% from the stock’s previous close.
Zacks‘ analyst wrote, “We are reverting to a Neutral recommendation on Wendy’s from Outperform. While Wendy’s second-quarter 2013 adjusted earnings grew year over year mainly through effective cost control measures, sales scenario remained sluggish missing the Zacks Consensus Estimate and grew just 0.7% year over year. The improvement in comps was also soft. Further, we believe, the positive impact of multi-year turnaround plan, international expansion, extensive refurbishment of units, focus on franchising and dividend hike are reflected at the current level and there is little room for further upside. Although Wendy’s repositioning efforts seem to be on track, the turnaround process still needs time before it fully pays off. Moreover, an uncertain economy, faltering consumer confidence as well as heightened competition remain causes of concern.”
Several other analysts have also recently commented on the stock. Analysts at KeyCorp upgraded shares of The Wendy’s (NYSE:WEN) from an “underweight” rating to a “hold” rating in a research note to investors on Friday, September 13th. Separately, analysts at Argus upgraded shares of The Wendy’s (NYSE:WEN) from a “hold” rating to a “buy” rating in a research note to investors on Thursday, September 12th. They now have a $10.00 price target on the stock. Finally, analysts at Thomson Reuters/Verus upgraded shares of The Wendy’s (NYSE:WEN) from a “sell” rating to a “hold” rating in a research note to investors on Monday, July 29th. Two equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and five have issued a buy rating to the stock. The stock has a consensus rating of “Hold” and an average target price of $6.97.
Shares of The Wendy’s (NYSE:WEN) traded down 0.76% on Monday, hitting $8.485. 1,503,040 shares of the company’s stock traded hands. The Wendy’s has a 52-week low of $4.09 and a 52-week high of $8.75. The stock has a 50-day moving average of $8.06 and a 200-day moving average of $6.53. The company has a market cap of $3.337 billion and a P/E ratio of 231.08.
The Wendy’s (NYSE:WEN) last released its earnings data on Tuesday, July 23rd. The company reported $0.08 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.06 by $0.02. The company had revenue of $650.50 million for the quarter, compared to the consensus estimate of $655.90 million. During the same quarter in the prior year, the company posted $0.05 earnings per share. The company’s quarterly revenue was up .7% on a year-over-year basis. Analysts expect that The Wendy’s will post $0.23 EPS for the current fiscal year.
The Wendy’s Company is a quick-service restaurant company in the hamburger sandwich segment. Wendy’s is primarily engaged in the business of operating, developing and franchising a system of distinctive quick-service restaurants serving food.
To view Zacks’ full report, visit www.zacks.com
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.