Fast-food chain Wendy’s NASDAQ:WENwill be reporting results this Friday morning. Here’s what investors should know.
Wendy's beat analysts’ revenue expectations last quarter, reporting revenues of $540.6 million, up 3.3% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is Wendy's a buy or sell going into earnings? .
This quarter, the market is expecting Wendy’s revenue to be flat year on year, improving from the 1.7% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Wendy's has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Wendy’s peers in the traditional fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Starbucks’s revenues decreased 1.4% year on year, beating analysts’ expectations by 1.5%, and Yum China reported revenues up 12.6%, topping estimates by 4.2%. Starbucks traded up 1.6% following the results while Yum China was also up 5.1%.
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There has been positive sentiment among investors in the traditional fast food segment, with share prices up 4.9% on average over the last month. Wendy's is up 2.5% during the same time and is heading into earnings with an average analyst price target of $7.75 (compared to the current share price of $7.98).
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