Wendy's (WEN, $17.67) slightly beat Q4 earnings, but missed sales estimates
Wendy’s reported lower-than-expected growth in same-store sales, and had marginally higher earnings compared to analysts’ estimates.
The fast food restaurant chain raked in 16 cents per share for the three months ending December, beating analysts’ estimates by only a penny. It is 9 cents a share higher compared to the year-ago quarter.
Total revenues rose +3.6% year-over-year to $397.8 million in the quarter, shy of analysts’ expectation of $400 million (according to the Street). Sales in stores opened for at least 15 months increased +0.2%, below the +0.74% consensus collected by I/E/B/S Refinitiv.
For 2019, Wendy’s forecasts adjusted earnings to be the range of 61 to 66 cents per share, up from 59 cents in 2018. The projection is lower than the Street prediction of 66 cents a share.
WEN sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for WEN moved above the 200-day moving average on October 24, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 04, 2024. You may want to consider a long position or call options on WEN as a result. In of 99 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for WEN just turned positive on October 10, 2024. Looking at past instances where WEN's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WEN advanced for three days, in of 292 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 231 cases where WEN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WEN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
WEN broke above its upper Bollinger Band on October 10, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (13.004) is normal, around the industry mean (5.853). P/E Ratio (17.872) is within average values for comparable stocks, (55.606). Projected Growth (PEG Ratio) (1.715) is also within normal values, averaging (1.769). Dividend Yield (0.057) settles around the average of (0.038) among similar stocks. P/S Ratio (1.657) is also within normal values, averaging (3.661).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. WEN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. WEN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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Fundamental Analysis Ratings
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General Information
an operater of fast food restaurants
Industry Restaurants