Bernstein lowered the firm’s price target on Wendy’s (WEN) to $12 from $15 and keeps a Market Perform rating on the shares. The firm says Wendy’s Q2 same-store sales performance was disappointing, and guidance of sequentially worsening same-store sales is scary, but reflects the reality of a sub-scale player that is competing in a challenging industry, where the core consumers are simply not showing up. International markets continue to be the bright spot. Like its peers, Wendy’s is seeing a significant traffic compression of low-income consumers, Bernstein adds. Same-store sales trends worsened in July, leading management to reduce global SWS growth guidance to -3% to -5% and EBITDA to $505M to $525M.
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