Shares of Wendy’s climbed on Wednesday as Wedbush Equity Research boosted its rating in anticipation of growing sales and profits.
THE SPARK: Analyst Nick Setyan raised his rating for Dublin, Ohio, company to ‘‘Outperform’’ from ‘‘Neutral’’ and increased his price target by 50 cents to $5.50.
He cited the company’s recently released sales second-quarter sales predictions and future profit potential.
THE BIG PICTURE: The Wendy’s Co. is reinventing itself, trying to shake the perception that its stores and menu had become outdated.
It dethroned Burger King as the country’s second biggest hamburger chain, according to a report earlier this year from the food industry research firm Technomic Inc.
The chain brought in new leadership and overhauled its menu. Still, the company struggled last quarter with higher costs for beef and slower-than-expected sales.
THE ANALYSIS: Setyan said the company’s second-quarter same-store sales guidance exceeded the expectations most Wall Street expectations.
He predicted that Wendy’s will continue to post same-store sales growth and boosted his third-quarter growth prediction to an increase of 3 percent from his previous prediction of 2 percent...
Source: Argentine Beef Packers S.A.
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