Wendy's Earnings Outlook Remains Weak
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy WEN?
Source: stocktwits
- Revenue Decline Expected: Wall Street estimates Wendy's fourth-quarter revenue at $536.7 million, a 6.5% year-over-year decline, indicating ongoing market pressures amid overall industry underperformance.
- Earnings Per Share Drop: Expected earnings per share are $0.14, down from $0.25 a year earlier, highlighting challenges in attracting consumers and potentially impacting future investor confidence.
- CEO Selection Progress: Wendy's is in the process of selecting a new CEO, with the board reviewing both internal and external candidates; this ongoing process may influence the company's strategic direction despite the interim CEO being the CFO.
- Significant Stock Price Drop: Wendy's shares closed down nearly 8% on Thursday at $7.27, the lowest since March 2020, reflecting investor concerns about the company's future performance, particularly as consumers increasingly prefer dining at home.
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Analyst Views on WEN
Wall Street analysts forecast WEN stock price to rise
20 Analyst Rating
2 Buy
14 Hold
4 Sell
Hold
Current: 7.880
Low
8.00
Averages
9.39
High
11.00
Current: 7.880
Low
8.00
Averages
9.39
High
11.00
About WEN
The Wendy’s Company is primarily engaged in the business of operating, developing and franchising a system of distinctive quick-service restaurants. The Company’s menu includes made-to-order square hamburgers using beef, and fan favorites like the Spicy Chicken Sandwich and nuggets, Baconator, and the Frosty dessert. Its segments include Wendy’s U.S., Wendy’s International and Global Real Estate & Development. Wendy’s U.S. includes the operation and franchising of its restaurants in the United States. Wendy’s International includes the operation and franchising of its restaurants in countries and territories other than the United States. Global Real Estate & Development includes real estate activity for owned sites and sites leased from third parties, which are leased and/or subleased to franchisees, and also includes its share of the income of its Canadian restaurant real estate joint venture (TimWen). The Company and its franchisees have over 7,000 restaurants worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Wendy's Set to Announce Q4 Earnings on February 13
- Earnings Announcement: Wendy's is set to release its Q4 earnings on February 13 before market open, with an expected EPS of $0.14, reflecting a 44% year-over-year decline, and a revenue estimate of $536.72 million, down 6.5% year-over-year, indicating significant performance challenges.
- Performance Expectations: Over the past two years, Wendy's has beaten EPS estimates 63% of the time and revenue estimates 50% of the time; however, recent EPS estimates have seen 2 upward revisions and 13 downward revisions, suggesting a lack of confidence in the company's future performance.
- Revenue Estimate Fluctuations: In the last three months, revenue estimates have experienced 5 upward revisions and 7 downward revisions, reflecting analysts' cautious outlook on Wendy's sales capabilities in the current economic environment, which may impact investor confidence.
- Brand Revival Challenges: While Wendy's is working to revitalize its brand image and is perceived as undervalued, its progress in CEO search and expansion into the Mexican market demonstrates a strategic focus on future growth opportunities.
See More
Wendy's Earnings Outlook Remains Weak
- Revenue Decline Expected: Wall Street estimates Wendy's fourth-quarter revenue at $536.7 million, a 6.5% year-over-year decline, indicating ongoing market pressures amid overall industry underperformance.
- Earnings Per Share Drop: Expected earnings per share are $0.14, down from $0.25 a year earlier, highlighting challenges in attracting consumers and potentially impacting future investor confidence.
- CEO Selection Progress: Wendy's is in the process of selecting a new CEO, with the board reviewing both internal and external candidates; this ongoing process may influence the company's strategic direction despite the interim CEO being the CFO.
- Significant Stock Price Drop: Wendy's shares closed down nearly 8% on Thursday at $7.27, the lowest since March 2020, reflecting investor concerns about the company's future performance, particularly as consumers increasingly prefer dining at home.
See More
Market Update: S&P 500 Declines and Upcoming CPI Data
- CPI Expectations: The consumer price index, set to be released at 8:30 a.m. ET on Friday, is expected to show a month-over-month increase of 0.3% and a year-over-year rise of 2.5%, which could significantly influence market sentiment and lead investors to reassess their risk appetite.
- Moderna Stock Fluctuations: Moderna's shares have surged 50% over the past three months, closing at $40.11 on Thursday, although this remains significantly lower than the pandemic peak of $497, indicating ongoing volatility in biotech stocks that investors are closely monitoring.
- Wendy's Stock Decline: Wendy's shares fell 7.7% on Thursday, down 55% from their 52-week high, highlighting the persistent pressures facing the fast-food industry, which may impact its future market performance.
- Retail Sector Dynamics: The Amplify Online Retail ETF dropped nearly 4% on Thursday, now down 19.5% from its September high, reflecting weakness in the retail market, especially after experiencing five consecutive weeks of declines, which could negatively affect overall consumer confidence.
See More
Market Focus on Inflation and Earnings Reports
- Inflation Data Release: The January Consumer Price Index (CPI) is set to be released on February 13, with economists expecting the headline CPI to remain at 0.3% while core CPI rises from 0.2% to 0.3%, potentially influencing the Fed's rate decisions.
- Moderna Earnings Outlook: Moderna is scheduled to report its fourth-quarter results on Friday, with analysts anticipating the company to reaffirm its sales growth outlook of about 10% for 2026, although questions about the durability of this outlook may affect investor confidence.
- Wendy's Sales Forecast: Wendy's is projecting a decline in same-store sales in the high single digits for Q4, primarily due to tougher comparisons from last year and promotional activities, which could pressure the company in the competitive fast-food market.
- Enbridge Financial Forecast: Enbridge expects its fourth-quarter EBIDA to remain flat year-over-year, keeping it near the upper end of its full-year guidance range, with investors keen on updates regarding cash flow growth in 2026 and the impact of currency dynamics on its outlook.
See More
Major Earnings Announcements Before Friday's Open
- Earnings Release Preview: Major companies including Enbridge, Moderna, Cameco, TC Energy, and Alaska Air Group are set to report earnings before Friday's market open, which is expected to influence market sentiment.
- Market Focus: Investors will closely monitor the performance of these companies, particularly in the current economic climate, as it may impact stock price volatility and investment decisions.
- Additional Earnings Reports: In addition to the major firms, companies such as AAP, ACDVF, DCH, ESNT, LRLCF, MGA, MHK, NHYDY, RPT, SAFRY, WEN, and XAIR are also scheduled to release earnings before Friday, further enriching market information.
- Earnings Season Calendar: Seeking Alpha provides a comprehensive earnings season calendar, assisting investors in tracking the timing of earnings releases to optimize their investment strategies.
See More
Wendy's Launches 'Project Fresh' Turnaround Plan Amid Declining Sales
- Sales Decline: Wendy's reported a 2.6% drop in global sales last quarter, with adjusted earnings per share falling by 4%, indicating significant challenges in restoring growth and potentially undermining investor confidence.
- Poor Stock Performance: The stock has plummeted nearly 46% over the past 12 months, currently trading at $7.25 with a forward P/E ratio of 9, reflecting market skepticism about the company's future prospects.
- Four Pillars of the Plan: Wendy's 'Project Fresh' focuses on brand revitalization, system optimization, operational excellence, and capital allocation, aiming to attract consumers by introducing new energy drinks and improving coffee offerings, despite pressures on lower-income consumers.
- Franchise Closure Risks: The company may close up to 300 franchises in the U.S., highlighting the survival pressures Wendy's faces in the current economic climate, which could further impact its market share and brand image.
See More
Wendy's Set to Announce Q4 Earnings on February 13
- Earnings Announcement: Wendy's is set to release its Q4 earnings on February 13 before market open, with an expected EPS of $0.14, reflecting a 44% year-over-year decline, and a revenue estimate of $536.72 million, down 6.5% year-over-year, indicating significant performance challenges.
- Performance Expectations: Over the past two years, Wendy's has beaten EPS estimates 63% of the time and revenue estimates 50% of the time; however, recent EPS estimates have seen 2 upward revisions and 13 downward revisions, suggesting a lack of confidence in the company's future performance.
- Revenue Estimate Fluctuations: In the last three months, revenue estimates have experienced 5 upward revisions and 7 downward revisions, reflecting analysts' cautious outlook on Wendy's sales capabilities in the current economic environment, which may impact investor confidence.
- Brand Revival Challenges: While Wendy's is working to revitalize its brand image and is perceived as undervalued, its progress in CEO search and expansion into the Mexican market demonstrates a strategic focus on future growth opportunities.
See More
Wendy's Earnings Outlook Remains Weak
- Revenue Decline Expected: Wall Street estimates Wendy's fourth-quarter revenue at $536.7 million, a 6.5% year-over-year decline, indicating ongoing market pressures amid overall industry underperformance.
- Earnings Per Share Drop: Expected earnings per share are $0.14, down from $0.25 a year earlier, highlighting challenges in attracting consumers and potentially impacting future investor confidence.
- CEO Selection Progress: Wendy's is in the process of selecting a new CEO, with the board reviewing both internal and external candidates; this ongoing process may influence the company's strategic direction despite the interim CEO being the CFO.
- Significant Stock Price Drop: Wendy's shares closed down nearly 8% on Thursday at $7.27, the lowest since March 2020, reflecting investor concerns about the company's future performance, particularly as consumers increasingly prefer dining at home.
See More
Market Update: S&P 500 Declines and Upcoming CPI Data
- CPI Expectations: The consumer price index, set to be released at 8:30 a.m. ET on Friday, is expected to show a month-over-month increase of 0.3% and a year-over-year rise of 2.5%, which could significantly influence market sentiment and lead investors to reassess their risk appetite.
- Moderna Stock Fluctuations: Moderna's shares have surged 50% over the past three months, closing at $40.11 on Thursday, although this remains significantly lower than the pandemic peak of $497, indicating ongoing volatility in biotech stocks that investors are closely monitoring.
- Wendy's Stock Decline: Wendy's shares fell 7.7% on Thursday, down 55% from their 52-week high, highlighting the persistent pressures facing the fast-food industry, which may impact its future market performance.
- Retail Sector Dynamics: The Amplify Online Retail ETF dropped nearly 4% on Thursday, now down 19.5% from its September high, reflecting weakness in the retail market, especially after experiencing five consecutive weeks of declines, which could negatively affect overall consumer confidence.
See More
Market Focus on Inflation and Earnings Reports
- Inflation Data Release: The January Consumer Price Index (CPI) is set to be released on February 13, with economists expecting the headline CPI to remain at 0.3% while core CPI rises from 0.2% to 0.3%, potentially influencing the Fed's rate decisions.
- Moderna Earnings Outlook: Moderna is scheduled to report its fourth-quarter results on Friday, with analysts anticipating the company to reaffirm its sales growth outlook of about 10% for 2026, although questions about the durability of this outlook may affect investor confidence.
- Wendy's Sales Forecast: Wendy's is projecting a decline in same-store sales in the high single digits for Q4, primarily due to tougher comparisons from last year and promotional activities, which could pressure the company in the competitive fast-food market.
- Enbridge Financial Forecast: Enbridge expects its fourth-quarter EBIDA to remain flat year-over-year, keeping it near the upper end of its full-year guidance range, with investors keen on updates regarding cash flow growth in 2026 and the impact of currency dynamics on its outlook.
See More
Major Earnings Announcements Before Friday's Open
- Earnings Release Preview: Major companies including Enbridge, Moderna, Cameco, TC Energy, and Alaska Air Group are set to report earnings before Friday's market open, which is expected to influence market sentiment.
- Market Focus: Investors will closely monitor the performance of these companies, particularly in the current economic climate, as it may impact stock price volatility and investment decisions.
- Additional Earnings Reports: In addition to the major firms, companies such as AAP, ACDVF, DCH, ESNT, LRLCF, MGA, MHK, NHYDY, RPT, SAFRY, WEN, and XAIR are also scheduled to release earnings before Friday, further enriching market information.
- Earnings Season Calendar: Seeking Alpha provides a comprehensive earnings season calendar, assisting investors in tracking the timing of earnings releases to optimize their investment strategies.
See More
Wendy's Launches 'Project Fresh' Turnaround Plan Amid Declining Sales
- Sales Decline: Wendy's reported a 2.6% drop in global sales last quarter, with adjusted earnings per share falling by 4%, indicating significant challenges in restoring growth and potentially undermining investor confidence.
- Poor Stock Performance: The stock has plummeted nearly 46% over the past 12 months, currently trading at $7.25 with a forward P/E ratio of 9, reflecting market skepticism about the company's future prospects.
- Four Pillars of the Plan: Wendy's 'Project Fresh' focuses on brand revitalization, system optimization, operational excellence, and capital allocation, aiming to attract consumers by introducing new energy drinks and improving coffee offerings, despite pressures on lower-income consumers.
- Franchise Closure Risks: The company may close up to 300 franchises in the U.S., highlighting the survival pressures Wendy's faces in the current economic climate, which could further impact its market share and brand image.
See More
