Barclays Maintains an 'Overweight' on Wendy's (WEN); Top Takeaways From Management Meetings
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Price: $8.81 -1.34%
Rating Summary:
13 Buy, 25 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
13 Buy, 25 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Barclays maintains an 'Overweight' on Wendy's (NYSE: WEN) price target of $6.00.
Barclays analyst says, "Key Takeaways: 1) Recent developments a net positive... a new CEO, Arby's sale, comp / traffic momentum, 2) Long-term guidance strong... 10-15% EBITDA growth starting '12, with levers to pull, 3) Premium positioning returns... salads, fries, burger in 4Q11, chicken in 1Q12, 4) Breakfast success critical... 25% of QSR sales, 1k units by year end, $150k initial sales lift, margin accretive at $200k, 5) Food inflation persists... 5-6% inflation in '11, significant relief not expected in '12 as beef overwhelms, 6) Capital usage options significant... $500m+ in excess cash, focus on organic growth (with remodels, breakfast, int'l), share repurchase, dividend, 7) Remodels a big focus... new design to see 25%+ lift post honeymoon, strong return on $500k+ investment, rollout to ramp in 2H12, 8) Balance sheet flexibility...leverage post Arby's sale a sustainable 2.3x, refinancing of 10% debt not likely before July '12 call, 9) Int'l long term opportunity... 300 units today not a factor, 1,000 total including pipeline, JV likely in China and Brazil."
For more ratings news on Wendy's click here and for the rating history of Wendy's click here.
Shares of Wendy's closed at $4.92 yesterday.
Barclays analyst says, "Key Takeaways: 1) Recent developments a net positive... a new CEO, Arby's sale, comp / traffic momentum, 2) Long-term guidance strong... 10-15% EBITDA growth starting '12, with levers to pull, 3) Premium positioning returns... salads, fries, burger in 4Q11, chicken in 1Q12, 4) Breakfast success critical... 25% of QSR sales, 1k units by year end, $150k initial sales lift, margin accretive at $200k, 5) Food inflation persists... 5-6% inflation in '11, significant relief not expected in '12 as beef overwhelms, 6) Capital usage options significant... $500m+ in excess cash, focus on organic growth (with remodels, breakfast, int'l), share repurchase, dividend, 7) Remodels a big focus... new design to see 25%+ lift post honeymoon, strong return on $500k+ investment, rollout to ramp in 2H12, 8) Balance sheet flexibility...leverage post Arby's sale a sustainable 2.3x, refinancing of 10% debt not likely before July '12 call, 9) Int'l long term opportunity... 300 units today not a factor, 1,000 total including pipeline, JV likely in China and Brazil."
For more ratings news on Wendy's click here and for the rating history of Wendy's click here.
Shares of Wendy's closed at $4.92 yesterday.
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