Ivan Feinseth of Tigress Financial on Friday reiterated a Buy rating on Wendy's Company WEN as the company continues to execute well on its shareholder value-creation strategy.
Feinseth notes that same-restaurant-sales have been positive for five consecutive quarters, and expectations are that the company's top-line will benefit from positive macroeconomic conditions for consumers.
Feinseth adds that the company's efforts to “right-size” its operations has resulted in a 14.79 percent drop in revenue. However, management's “A Cut Above” strategy which generates a $1 premium over core products is driving impressive improvements in EBITDAR and NOPAT margins.
Finally, the analyst states that the company's plans to become less capital-intensive and its ongoing divestitures of company-owned stores will “significantly” improve its Economic Profit and Economic Profit Spread in the coming years.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in