Wendy's (WEN) PT Lowered to $9.50 at UBS

UBS analyst Dennis Geiger lowered the price target on Wendy's (NASDAQ: WEN) to $9.50 (from $11.00) while maintaining a Neutral rating.

The analyst commented, "3Q results & commentary highlighted pressured US sss due to macro & competitive headwinds, while international performance was largely solid, but focus was on turnaround plans, including US restaurant closures. Key '25 guidance metrics were reiterated, including global sss down 3% to 5% and adj. EPS of $0.82-0.89, while FCF was updated to $195-210MM (from $160-175MM) with capex lowered to $135-145MM (from $165-175MM). We expect results will remain challenged in 4Q, however traction against sales initiatives (ie chicken tenders launch 11/5) and the implementation of Project Fresh should generate sales improvement through '26. Focus from here is on execution against plans to strengthen US sss trends and deliver against unit development targets. While valuation appears undemanding (~10x '26 EBITDA), we look for a strengthening sales trajectory and improving FCF growth as drivers for upside."

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