Market Overview

A Few Key Takeaways From KeyBanc's Visit To Wendy's HQ


KeyBanc Capital Markets analysts visited Wendys co (NASDAQ: WEN) head office in Ohio and left with eight key takeaways.

The Analyst

KeyBanc's Eric Gonzalez maintains a Sector Weight rating on Wendys.

The Thesis

KeyBanc met with a handful of Wendys' senior executives, including CEO Todd Penegor, CFO Gunther Plosch and Chief Commercial Officer Kurt Kane. Some of the more notable takeaways from the tour and chat include:

  • Franchisee profitability likely fell in 2018 (final numbers not yet available) after rising from 2015 to 2017, but restaurant margins improved in the first quarter.
  • Wendys wants to be a global restaurant company but management does "not see itself that way in its current form."
  • Wendys is seeing early signs of benefits of scale, which will only "get larger" moving forward from better understanding consumer data.
  • Traffic trends are likely to remain flat to slightly negative in the near term, but progress was made during the first quarter.
  • Management's exclusive delivery partnership with DoorDash is a strategic initiative meant to drive incremental traffic at off-peak hours.
  • The company "expressed interest" in serving plant-based meat alternative products and continues to conduct R&D to "determine the sustainability of the trend."
  • Management has long-term contracts in place to hedge chicken and potato costs, but it can only lock in beef prices three months in advance.

Price Action

Shares of Wendys traded around $19.32 at time of publication Monday.

Related Links:

Where's The Beef? Street Weighs In On Wendy's Stock

There's A Beyond Meat Shortage At Freebirds Restaurants

Latest Ratings for WEN

Jan 2021Evercore ISI GroupDowngradesOutperformIn-Line
Jan 2021OppenheimerDowngradesOutperformPerform
Nov 2020Northcoast ResearchUpgradesNeutralBuy

View More Analyst Ratings for WEN
View the Latest Analyst Ratings


Related Articles (WEN)

View Comments and Join the Discussion!

Posted-In: beef Eric Gonzalez Fast Food KeyBanc Capital MarketsAnalyst Color Restaurants Analyst Ratings General

Latest Ratings

MRTXHC Wainwright & Co.Maintains257.0
NVDATruist SecuritiesMaintains672.0
BLKBMO CapitalMaintains715.0
BLKDeutsche BankMaintains838.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at