Wedbush Starts Wendy's (WEN) at Neutral; Progress in Multi-Year Turnaround, but Near-Term Expectations Could Prove Overly Optimistic

Wedbush initiates coverage on Wendy's (NASDAQ: WEN) with a Neutral. PT $5.25.

Wedbush analyst says, "We believe Wendy’s is in the middle innings of a multi-year turnaround effort with multiple long- and medium-term opportunities ahead. Nevertheless, we believe optimism based on a re-launched menu core puts near-term expectations at risk."

"Rollout of breakfast a SSS contributor once management fully commits, but recent contribution may slow in Q4 and 1H:12...Elevated beef costs pressuring margins near-term...Expected increase in Trian stake and continued share buybacks should provide support as turnaround continues."

For an analyst ratings summary and ratings history on Wendy's click here. For more ratings news on Wendy's click here.

Shares of Wendy's closed at $5.38 yesterday.

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