UBS Reiterates Neutral Rating on Wendy's (WEN)

UBS analyst Dennis Geiger reiterated a Neutral rating and $14.00 price target on Wendy's (NASDAQ: WEN).

The analyst commented, "1Q results & commentary included weaker than expected sss and lowered '25 guidance given macro & industry headwinds, with plans to strengthen the business and take market share through '25. Macro pressures led to a -MSD% decline in QSR burger category traffic in 1Q, with pressure greatest among lower income consumers (<$75K, down -HSD%), w/ expectations that the prior industry sss forecast of -1% to flat will be revised lower. Lowered '25 global system sales growth guidance of -2% to flat largely reflects negative revisions to US sss growth targets, w/ international sss targets and the 2-3% global unit development outlook unchanged. Targeted '25 adj EBITDA of $530-545MM embeds recent top line trends and outlined strategic initiatives to drive growth over the coming quarters. Focus from here is on execution against plans to strengthen US sss trends and deliver against unit development targets. While valuation appears undemanding (~9x '26 EBITDA), we look for a strengthening sales trajectory, accelerating multiyear unit expansion, and improving FCF growth as drivers for upside."

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 $12.55 yesterday.

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