Wendys’s “Neutral” Rating Reaffirmed at Zacks (WEN)
Wendys (NYSE: WEN)‘s stock had its “neutral” rating reaffirmed by Zacks in a report released on Monday. They currently have a $5.75 target price on the stock.
Zacks‘ analyst wrote, “The Wendy’s reported fourth-quarter 2012 adjusted earnings of $0.09 per share, ahead of the Zacks Consensus Estimate as well as the year-ago earnings of $0.04 per share. In 2012, the company’s adjusted earnings per share were $0.17, up 13.3% annually. Total revenues in the fourth quarter climbed 2.4% annually to $629.9 million, driven by the company’s new acquisitions and unit openings. Same-store sales at North America Company-operated restaurants declined 0.2% versus a rise of 5.1% in the year-earlier quarter. The Wendy’s North America Franchise same-store sales also declined 0.6%. The company is concentrating more on enhancing its shareholders’ value through dividend distribution and share buyback. Although The 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 and high commodity costs are major headwinds. Thus, we remain Neutral on the stock.”
Shares of Wendys traded down 0.82% during mid-day trading on Monday, hitting $5.465. Wendys has a one year low of $4.09 and a one year high of $5.95. The stock’s 50-day moving average is currently $5.21. The company has a market cap of $2.147 billion and a P/E ratio of 306.11.
Wendys last issued its quarterly earnings data on Wednesday, January 16th. The company reported $0.08 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.04 by $0.04. The company had revenue of $629.90 million for the quarter, compared to the consensus estimate of $637.94 million. During the same quarter in the previous year, the company posted $0.04 earnings per share. The company’s revenue for the quarter was up 2.4% on a year-over-year basis. Wendys has set its FY13 guidance at $0.18-0.20 EPS. On average, analysts predict that Wendys will post $0.19 earnings per share for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Morgan Stanley downgraded shares of Wendys from an “equal weight” rating to an “underweight” rating in a research note to investors on Friday. They now have a $5.00 price target on the stock. Separately, analysts at Standpoint Research downgraded shares of Wendys from a “buy” rating to a “hold” rating in a research note to investors on Wednesday, February 27th. Finally, analysts at Telsey Advisory Group raised their price target on shares of Wendys from $5.00 to $6.00 in a research note to investors on Friday, February 22nd.
The company also recently announced a quarterly dividend, which is scheduled for Friday, March 15th. Investors of record on Friday, March 1st will be paid a dividend of $0.04 per share. This represents a $0.16 annualized dividend and a dividend yield of 2.90%. The ex-dividend date is Wednesday, February 27th.
The Wendy’s Company is a quick-service hamburger company. The Wendy’s system includes more than 6,500 franchise and Company restaurants in the United States and 27 other countries and the United States territories worldwide.
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