UPDATE: KeyBanc Capital Markets Downgrades The Wendy's Company to Underweight on Competitive Risk

KeyBanc Capital Markets reduced its rating on The Wendy's Company

from Hold to Underweight with a new price target of $4 a share. KeyBanc Capital Markets commented, "Wendy's is in the early stages of re-establishing its position as “A Cut Above” the competition. On the surface it seems to make sense that Wendy's should want to recapture its premium-quality positioning in fast food, but we believe it will be difficult to regain for the following reasons: 1) new premium-quality food leadership has been established by chains with fast service, like Panera Bread and Chick-fil-a; 2) raising the check average in the face of industry leaders, like McDonald's, promoting more value will be a challenge; and 3) Wendy's has not proven its new remodel package can generate the returns necessary for franchisees to roll-out." The Wendy's Company closed at $4.37 on Monday.