Fast-food chain Wendy’s (NASDAQ:WEN) will be reporting earnings tomorrow morning. Here’s what to expect.
Wendy's beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $566.7 million, up 2.9% year on year. It was a mixed quarter for the company, with full-year EBITDA guidance slightly topping analysts’ expectations but a slight miss of analysts’ same-store sales estimates.
Is Wendy's a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Wendy’s revenue to grow 4.1% year on year to $562.6 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.24 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Wendy's has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Wendy’s peers in the traditional fast food segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Starbucks posted flat year-on-year revenue, beating analysts’ expectations by 0.9%, and Yum China reported revenues up 4.1%, falling short of estimates by 1.7%. Starbucks traded up 8.2% following the results while Yum China was also up 6.4%.
Read our full analysis of Starbucks’s results here and Yum China’s results here.
There has been positive sentiment among investors in the traditional fast food segment, with share prices up 9.5% on average over the last month. Wendy's is down 4% during the same time and is heading into earnings with an average analyst price target of $18.50 (compared to the current share price of $14.32).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
