Wendy's Earnings: What To Look For From WEN

Max Juang /
2024/02/14 2:02 am EST

Fast-food chain Wendy’s (NASDAQ:WEN) will be reporting earnings tomorrow before the bell. Here's what to look for.

Last quarter Wendy's reported revenues of $550.6 million, up 3.4% year on year, missing analyst expectations by 0.8%. It was a strong quarter for the company, with an impressive beat of analysts' gross margin estimates and a decent beat of analysts' earnings estimates.

Is Wendy's buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Wendy's's revenue to grow 1.9% year on year to $546.7 million, slowing down from the 13.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.

Wendy's Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing six downward revisions over the last thirty days. The company missed Wall St's revenue estimates five times over the last two years.

Looking at Wendy's's peers in the traditional fast food segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Yum! Brands delivered top-line growth of 0.8% year on year, missing analyst estimates by 3.3% and Restaurant Brands reported revenues up 7.8% year on year, exceeding estimates by 1%. Yum! Brands traded down 1.9% on the results, and Restaurant Brands was flat on the results.

Read our full analysis of Yum! Brands's results here and Restaurant Brands's results here.

There has been positive sentiment among investors in the traditional fast food segment, with the stocks up on average 3.5% over the last month. Wendy's is up 0.6% during the same time, and is heading into the earnings with analyst price target of $22.1, compared to share price of $19.1.

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