Oppenheimer analyst Brian Bittner maintained a Buy rating on Wendy’s (WEN) today and set a price target of $22. The company’s shares opened today at $18.71, close to its 52-week high of $19.45.
Bittner said:
“WEN delivered an impressive 1Q19 beat and reiterated full-year ’19 earnings guidance. Our analysis now suggests mgmt’s ’19 outlook tilts conservatively, particular given improved margin momentum. But, we understand the model will absorb new investments in the back half of ’19, so our earnings estimates tick higher but remain within the guided range. Relating to sales, improving menu-mix drove a solid SSS acceleration to +1.3%, consistent with our thesis. This suggests a healthy setup for the rest of ’19, particularly against easier 2H comparisons and conservative margin forecasts. Reiterate Outperform and raise price target to $22 from $20.”
According to TipRanks.com, Bittner is a top 100 analyst with an average return of 11.5% and a 71.3% success rate. Bittner covers the Services sector, focusing on stocks such as Restaurant Brands International, Jack In The Box Inc, and Cheesecake Factory.
Wendy’s has an analyst consensus of Moderate Buy, with a price target consensus of $18.83.
See today’s analyst top recommended stocks >>
Based on Wendy’s’ latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $18.83 million. In comparison, last year the company had a net profit of $20.16 million.
Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is negative on the stock.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
The Wendy’s Co. engages in operating, developing, and franchising a system of quick-service restaurants. It offers hamburgers and related products, such as chicken breast sandwiches, nuggets, chili, and baked potatoes, French fries, freshly prepared salads, soft drinks, milk, coffee, frosty deserts and kid’s meals.
