Analyst Andrew Charles of TD Cowen maintained a Hold rating on Wendy’s (WEN – Research Report), reducing the price target to $13.00.
Andrew Charles has given his Hold rating due to a combination of factors impacting Wendy’s current performance and future outlook. The company is focusing on collaborations, chicken, and specialty beverages, which are positive strategic priorities. However, these efforts are being balanced against a challenging industry environment that is affecting peers as well.
Wendy’s recent financial performance showed softer-than-expected sales, with U.S. same-store sales declining more than anticipated. Although there was a slight beat in adjusted EBITDA due to lower general and administrative expenses and a claim settlement, the overall sales environment remains tough. Consumer confidence is deteriorating, particularly among lower-income consumers, which is likely to continue affecting sales. Given these challenges, Andrew Charles has adjusted his expectations for future sales growth and maintains a cautious outlook, leading to the Hold rating.
According to TipRanks, Charles is a 5-star analyst with an average return of 8.6% and a 53.68% success rate. Charles covers the Consumer Cyclical sector, focusing on stocks such as Yum! Brands, Wendy’s, and Shake Shack.
In another report released today, Barclays also maintained a Hold rating on the stock with a $14.00 price target.