Q3 Preview: Wendy's/Arby's (WEN) Looks to Show Improving Trends at its Franchises
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Price: $8.81 --0%
Rating Summary:
13 Buy, 25 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
13 Buy, 25 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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Shares of Wendy's/Arby's Group Inc. (NYSE: WEN) are down $0.09 or 1.83 percent to $5.01 in midday market movement on Thursday ahead of the company's third-quarter earnings release scheduled for Friday before the opening bell.
The fast food restaurant chain operator is expected by analysts to report earnings of $0.04 per share on revenue of $881.92 million.
In the second quarter, Wendy's/Arby's reported earnings of $0.06 per share, beating the analyst estimate of $0.05 per share. The company reported second-quarter revenue of $877 million, missing the consensus of $887.7 million.
Since the start of the third quarter, shares of Wendy's/Arby's are up $0.86 or 20.72 percent. Year-to-date the stock is up $0.32 or 6.82 percent.
A valuation shows that Wendy's/Arby's is going for a forward P/E of 313.91x full year 2010 estimates.
Data from Bloomberg shows that 6 analysts have a Buy rating on the stock, 10 have a Hold and 1 has a Sell. The average analyst price target on Wendy's/Arby's is $5 with a target range of $4.50 to $7.
Analyst Comments
Deutsche Bank maintains a Buy rating on Wendy's/Arby's with a price target of $5.25 on the stock.
Deutsche Bank analyst says, "Similar to our checks from early Oct, we continue to hear of improving trends from Arby’s franchisees. We believe business picked up over the course of 3Q, on the back of value messaging, easing compares, and some stabilization/improvement in overall fast food consumer trends. One large franchisee noted that SSS were down mid single-digits in July, down slightly in Aug, and up low single-digits in both Sept and Oct."
The fast food restaurant chain operator is expected by analysts to report earnings of $0.04 per share on revenue of $881.92 million.
In the second quarter, Wendy's/Arby's reported earnings of $0.06 per share, beating the analyst estimate of $0.05 per share. The company reported second-quarter revenue of $877 million, missing the consensus of $887.7 million.
Since the start of the third quarter, shares of Wendy's/Arby's are up $0.86 or 20.72 percent. Year-to-date the stock is up $0.32 or 6.82 percent.
A valuation shows that Wendy's/Arby's is going for a forward P/E of 313.91x full year 2010 estimates.
Data from Bloomberg shows that 6 analysts have a Buy rating on the stock, 10 have a Hold and 1 has a Sell. The average analyst price target on Wendy's/Arby's is $5 with a target range of $4.50 to $7.
Analyst Comments
Deutsche Bank maintains a Buy rating on Wendy's/Arby's with a price target of $5.25 on the stock.
Deutsche Bank analyst says, "Similar to our checks from early Oct, we continue to hear of improving trends from Arby’s franchisees. We believe business picked up over the course of 3Q, on the back of value messaging, easing compares, and some stabilization/improvement in overall fast food consumer trends. One large franchisee noted that SSS were down mid single-digits in July, down slightly in Aug, and up low single-digits in both Sept and Oct."
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