Wendy’s (WEN) Q3 Earnings: What To Expect

Fast-food chain Wendy’s (NASDAQ:WEN)
will be reporting results tomorrow before market open. Here’s what to expect.

Last quarter Wendy’s (NASDAQ:) reported revenues of $561.6 million, up 4.42% year on year, missing analyst expectations by 0.89%. It was a weak quarter for the company, with a miss of analysts’ revenue estimates. On the other hand, EPS surpassed expectations.

Is Wendy’s buy or sell heading into the earnings? Find out by reading the original article on StockStory.

This quarter analysts are expecting Wendy’s’s revenue to grow 4.21% year on year to $555 million, slowing down from the 13.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St’s revenue estimates five times over the last two years.

Looking at Wendy’s’s peers in the traditional fast food segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. McDonald’s (NYSE:) delivered top-line growth of 14% year on year, beating analyst estimates by 2.16% and Yum China reported revenues up 8.53% year on year, missing analyst estimates by 5.65%. McDonald’s traded up 2.7% on the results, and Yum China was down 11.1%.

Read the full analysis of McDonald’s’s and Yum China’s results on StockStory.

Investors in the traditional fast food segment have had steady hands going into the earnings, with the stocks up on average 1.5% over the last month. Wendy’s is down 1.96% during the same time, and is heading into the earnings with analyst price target of $23.6, compared to share price of $19.0.

The author has no position in any of the stocks mentioned.