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Wendy's Q3 Preview: Double-Digit Earnings Growth in Store?
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The Zacks Retail and Wholesale sector has primarily struggled in 2022, down nearly 29% and underperforming the S&P 500 by a fair margin.
A widely-recognized company in the realm, The Wendy’s Company (WEN - Free Report) , is on deck to unveil quarterly earnings on November 9th, before the market open.
The Wendy's Company, the world’s third-largest quick-service restaurant company, operates through its subsidiary holding company — Wendy’s Restaurants, LLC. We see their restaurants at seemingly every stop.
Currently, the fast-food titan carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of a C.
How does everything else stack up? Let’s take a closer look.
Share Performance & Valuation
Year-to-date, Wendy’s shares have been relatively strong, declining roughly 12% in value and outperforming the S&P 500 by a fair margin.
Image Source: Zacks Investment Research
Over the last three months, Wendy’s shares have continued on their market-beating trajectory, down 2% vs. the S&P 500’s decline of more than 9%.
Image Source: Zacks Investment Research
Further, shares currently trade at a 24.2X forward earnings multiple, well below the 30.7X five-year median and just a tick above that of its Zacks sector average.
Wendy’s carries a Value Style Score of a C.
Image Source: Zacks Investment Research
Quarterly Estimates
A singular analyst has lowered their earnings outlook for the quarter over the last several months. Still, the Zacks Consensus EPS Estimate of $0.23 indicates a Y/Y earnings uptick of more than 20%.
Image Source: Zacks Investment Research
The company’s top-line appears to be in solid standing as well; the Zacks Consensus Sales Estimate of $542.2 million suggests a Y/Y uptick of more than 15% from year-ago quarterly sales of $470.3 million.
Quarterly Performance
WEN’s bottom-line results have been consistently reported above expectations as of late, surpassing EPS estimates in three of its last four quarters. Just in its latest print, the restaurant titan registered a 9.1% bottom-line beat.
However, sales results have left some to be desired as of late, with the company falling short of revenue estimates in three of its last four quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
WEN shares have outperformed the general market across several timeframes in 2022, indicating that buyers have stepped up to the plate much higher than they have for other stocks.
The company’s forward P/E is well below its five-year median and just modestly above its Zacks sector average.
A singular analyst has lowered their outlook for the quarter, with estimates suggesting Y/Y upticks in both revenue and earnings.
Further, WEN has consistently exceeded bottom-line estimates, but revenue results have left some to be desired as of late.
Heading into the release, The Wendy’s Company (WEN - Free Report) is a Zacks Rank #3 (Hold) with an overall VGM Score of a C.
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Wendy's Q3 Preview: Double-Digit Earnings Growth in Store?
The Zacks Retail and Wholesale sector has primarily struggled in 2022, down nearly 29% and underperforming the S&P 500 by a fair margin.
A widely-recognized company in the realm, The Wendy’s Company (WEN - Free Report) , is on deck to unveil quarterly earnings on November 9th, before the market open.
The Wendy's Company, the world’s third-largest quick-service restaurant company, operates through its subsidiary holding company — Wendy’s Restaurants, LLC. We see their restaurants at seemingly every stop.
Currently, the fast-food titan carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of a C.
How does everything else stack up? Let’s take a closer look.
Share Performance & Valuation
Year-to-date, Wendy’s shares have been relatively strong, declining roughly 12% in value and outperforming the S&P 500 by a fair margin.
Image Source: Zacks Investment Research
Over the last three months, Wendy’s shares have continued on their market-beating trajectory, down 2% vs. the S&P 500’s decline of more than 9%.
Image Source: Zacks Investment Research
Further, shares currently trade at a 24.2X forward earnings multiple, well below the 30.7X five-year median and just a tick above that of its Zacks sector average.
Wendy’s carries a Value Style Score of a C.
Image Source: Zacks Investment Research
Quarterly Estimates
A singular analyst has lowered their earnings outlook for the quarter over the last several months. Still, the Zacks Consensus EPS Estimate of $0.23 indicates a Y/Y earnings uptick of more than 20%.
Image Source: Zacks Investment Research
The company’s top-line appears to be in solid standing as well; the Zacks Consensus Sales Estimate of $542.2 million suggests a Y/Y uptick of more than 15% from year-ago quarterly sales of $470.3 million.
Quarterly Performance
WEN’s bottom-line results have been consistently reported above expectations as of late, surpassing EPS estimates in three of its last four quarters. Just in its latest print, the restaurant titan registered a 9.1% bottom-line beat.
However, sales results have left some to be desired as of late, with the company falling short of revenue estimates in three of its last four quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
WEN shares have outperformed the general market across several timeframes in 2022, indicating that buyers have stepped up to the plate much higher than they have for other stocks.
The company’s forward P/E is well below its five-year median and just modestly above its Zacks sector average.
A singular analyst has lowered their outlook for the quarter, with estimates suggesting Y/Y upticks in both revenue and earnings.
Further, WEN has consistently exceeded bottom-line estimates, but revenue results have left some to be desired as of late.
Heading into the release, The Wendy’s Company (WEN - Free Report) is a Zacks Rank #3 (Hold) with an overall VGM Score of a C.