Market Overview

5 Reasons To Like Wendys Right Now

Share:
5 Reasons To Like Wendys Right Now

Wendys Co (NASDAQ: WEN) has recovered lost sales since the start of the COVID-19 pandemic and the fast-food chain should see growth in 2021, according to Northcoast Research.

The Wendys Analyst: Jim Sanderson upgraded Wendys' stock from Neutral to Buy with a new $28 price target.

The Wendys Thesis: The case for turning bullish on Wendys' stock is five-fold, Sanderson wrote in the note.

Related Link: Wendy's Strong Q3, Momentum Prompts Upgrade

  1. Proprietary checks point to "resilient" breakfast sales and management should increase its advertising budget by an extra $8 million in 2021 to further support morning daypart sales.
  2. 2020 includes a 53rd week of sales so fourth quarter results should benefit from recent momentum and high comps in the additional 14th week.
  3. Wendys international business should see further improvements as the company invests in omnichannel initiatives, including digital, delivery and drive-thru. While this is unlikely to show in 2021 results, higher average unit revenues will accelerate sales growth in later years.
  4. Canada is Wendys most important market outside of the U.S. and proprietary checks suggest Wendys is benefiting from demand tracking above expectations.
  5. U.S. store margins have fully recovered from low levels seen during the pandemic and should continue to benefit from stronger sales volumes.

WEN Price Action: Shares of Wendys traded flat Thursday at $23.14.

Latest Ratings for WEN

DateFirmActionFromTo
Jan 2021Goldman SachsInitiates Coverage OnNeutral
Jan 2021Morgan StanleyMaintainsEqual-Weight
Jan 2021Evercore ISI GroupDowngradesOutperformIn-Line

View More Analyst Ratings for WEN
View the Latest Analyst Ratings

 

Related Articles (WEN)

View Comments and Join the Discussion!

Posted-In: breakfast Coronavirus Fast FoodAnalyst Color Upgrades Restaurants Analyst Ratings General Best of Benzinga

Latest Ratings

StockFirmActionPT
TSLAJP MorganMaintains125.0
INTCTruist SecuritiesMaintains64.0
FBTruist SecuritiesMaintains320.0
GSCitigroupMaintains370.0
AAPLCowen & Co.Maintains153.0
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 vipaccounts@benzinga.com