Wendy's (WEN, $20.97) beats Q3 expectations; boosts full-year earnings outlook
On Wednesday, Wendy's reported higher-than-expected third-quarter earnings, on the back of strong same-store sales growth.
The fast-food restaurant chain’s adjusted earnings before income, taxes, depreciation and amortization came in at $109.9 million, or 19 cents a share on an adjusted basis. In the year-ago quarter, the figure was $107.2 million, or 17 cents a share. Analysts polled by FactSet had been expecting earnings of 15 cents a share.
Sales of $437.9 million for the quarter exceeded analysts’ expectation of $434.4 million. It is also higher from the year-ago quarter’s $400.6 million.
Same-store sales in North America rose +4.4%. The systemwide same-store sales grew +5.5%.
For the full year, Wendy's now expects adjusted earnings growth in the range between negative -1.5% and positive 1.5% (from its prior guidance of between a drop of -3.5% and -6.5%).
The company projects full-year total sales of between $12 billion and $12.5 billion, and adjusted EBITDA of approximately $425 million to $435 million.
WEN in downward trend: 10-day moving average broke below 50-day moving average on November 20, 2024
The 10-day moving average for WEN crossed bearishly below the 50-day moving average on November 20, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 06, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on WEN as a result. In of 98 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
WEN moved below its 50-day moving average on November 15, 2024 date and that indicates a change from an upward trend to a downward trend.
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 .
The Aroon Indicator for WEN entered a downward trend on December 20, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 10 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
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 (13.055) is normal, around the industry mean (10.870). P/E Ratio (17.713) is within average values for comparable stocks, (56.545). Projected Growth (PEG Ratio) (1.681) is also within normal values, averaging (1.763). Dividend Yield (0.060) settles around the average of (0.039) among similar stocks. P/S Ratio (1.552) is also within normal values, averaging (8.536).
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 fairly steady price growth. WEN’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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.
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 82, placing this stock worse than average.
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General Information
an operater of fast food restaurants
Industry Restaurants