Fast-food chain Wendy’s (NASDAQ: WEN) will be reporting earnings this Thursday before the bell. Here’s what to expect.
Wendy's beat analysts’ revenue expectations last quarter, reporting revenues of $570.6 million, up 1.7% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EBITDA estimates but a 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 for active Edge members.
This quarter, the market is expecting Wendy’s revenue to decline 2.9% year on year, in line with the 3% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Wendy's rarely misses Wall Street’s revenue estimates.
Looking at Wendy’s peers in the traditional fast food segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Yum! Brands delivered year-on-year revenue growth of 3.8%, beating analysts’ expectations by 2.8%, and Starbucks reported a revenue decline of 4.5%, falling short of estimates by 0.9%. Starbucks traded down 1.7% following the results.
Read our full analysis of Yum! Brands’s results here and Starbucks’s results here.
There has been positive sentiment among investors in the traditional fast food segment, with share prices up 13.4% on average over the last month. Wendy's is up 18% during the same time and is heading into earnings with an average analyst price target of $7.30 (compared to the current share price of $7.23).
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