UPDATE: KeyBanc Capital Markets Initiates Coverage of Wendy's with Hold Rating
In a report published Friday, KeyBanc Capital Markets initiated coverage of The Wendy's Company (NASDAQ: WEN) with a Hold rating.
KeyBanc noted, “We are initiating coverage...for the following reasons: 1) we believe EBITDA and EPS upside is limited considering Wendy's is in the early stages of a turnaround and fighting an onslaught of competition, while in the midst of a weakening consumer spending environment; 2) Wendy's may need to provide financial assistance to franchisees and/or acquire restaurants from franchisees, potentially complicating the turnaround effort; and 3) much of the cost-cutting has occurred, requiring the focus to be on producing profitable SRS growth.”
The Wendy's Company closed yesterday at $4.67.
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