KeyBanc Starts Wendy's (WEN) at Hold; EPS Upside Limited in Early Turnaround Stages

KeyBanc initiates coverage on Wendy's (NASDAQ: WEN) with a Hold.

Analyst, Christopher O'Cull, said, "Starting at HOLD for the following reasons: 1) we believe EBITDA and EPS upside is limited considering Wendy's is in the early stages of a turnaround and fighting an onslaught of competition, while in the midst of a weakening consumer spending environment; 2) Wendy's may need to provide financial assistance to franchisees and/or acquire restaurants from franchisees, potentially complicating the turnaround effort; and 3) much of the cost-cutting has occurred, requiring the focus to be on producing profitable SRS growth."

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 $4.69 yesterday.

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