- Wendy's reported a decrease in overall sales, with mixed results in different regions.
- Analysts maintain a "Hold" rating, with a notable potential upside in stock value.
- GuruFocus estimates suggest significant growth in stock price based on fair value calculations.
Wendy's (WEN, Financial) delivered a mixed bag of financial results for the first quarter, reflecting a challenging market environment. The company's global systemwide sales witnessed a slight downturn of 1.1%, driven by a 2.1% reduction in same-restaurant sales. In the U.S. market, same-restaurant sales saw a decline of 2.8%, whereas international sales showed resilience with a 2.3% rise. The adjusted earnings per share came in at $0.20, representing a 13% dip that still met analyst expectations.
Wall Street Analysts' Outlook
Analyst sentiment towards The Wendy's Co (WEN, Financial) suggests a cautiously optimistic outlook. With one-year price targets provided by 22 analysts, the average target price stands at $16.06. Targets range from a low of $13.00 to a potential high of $26.00. Currently priced at $12.49, this implies an upside potential of 28.56%. For more comprehensive estimate data, investors can visit the The Wendy's Co (WEN) Forecast page.
The consensus recommendation from 29 brokerage firms positions The Wendy's Co (WEN, Financial) with an average rating of 2.9, signifying a "Hold." This rating employs a scale where 1 indicates a Strong Buy and 5 indicates a Sell, reflecting a balanced viewpoint on the stock’s near-term prospects.
GuruFocus Estimates and Potential Growth
According to GuruFocus estimates, the projected GF Value for The Wendy's Co (WEN, Financial) in the upcoming year is $22.65. This projection suggests a notable upside of 81.35% from the present share price of $12.49. The GF Value is a proprietary formula developed by GuruFocus to determine a stock’s fair trading value. It incorporates historical trading multiples, past business growth, and future performance estimates. Interested investors can delve deeper into these details on the The Wendy's Co (WEN) Summary page.
