RBC Capital analyst Logan Reich reiterated a Sector Perform rating and $8.00 price target on Wendy's (NASDAQ: WEN)

The analyst commented, "We expect another challenging top-line quarter for WEN, though anticipate some directional improvement. That said, we model a slight SSS miss. Key indicator we're looking for is franchisee SSS relative to company- operated, where corporate stores have been outperforming by 400+ bps over the past couple of quarters as store operations have been starting to improve. International unit growth continues to progress, though driven by lower AUV markets, hence dilutive to AUVs. Further, flat population growth in Canada, which represents ~50% of segment's system sales, could be a y/ y headwind. We remain sidelined until we gain further confidence in the US turnaround."

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 $7.11 yesterday.