An Overview of Wendy's's Earnings
Wendy's (NASDAQ:WEN) is gearing up to announce its quarterly earnings on Friday, 2025-08-08. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Wendy's will report an earnings per share (EPS) of $0.25.
The announcement from Wendy's is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Overview of Past Earnings
During the last quarter, the company reported an EPS missed by $0.00, leading to a 0.0% drop in the share price on the subsequent day.
Here's a look at Wendy's's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.2 | 0.24 | 0.25 | 0.28 |
| EPS Actual | 0.2 | 0.25 | 0.25 | 0.27 |
| Price Change % | 0.0% | -3.0% | 3.0% | -0.0% |
Performance of Wendy's Shares
Shares of Wendy's were trading at $10.04 as of August 06. Over the last 52-week period, shares are down 41.28%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analysts' Perspectives on Wendy's
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Wendy's.
The consensus rating for Wendy's is Neutral, derived from 9 analyst ratings. An average one-year price target of $12.72 implies a potential 26.69% upside.
Understanding Analyst Ratings Among Peers
The below comparison of the analyst ratings and average 1-year price targets of Sweetgreen, Arcos Dorados Holdings and Cracker Barrel Old, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Sweetgreen, with an average 1-year price target of $19.62, suggesting a potential 95.42% upside.
- Analysts currently favor an Neutral trajectory for Arcos Dorados Holdings, with an average 1-year price target of $8.8, suggesting a potential 12.35% downside.
- Analysts currently favor an Neutral trajectory for Cracker Barrel Old, with an average 1-year price target of $57.14, suggesting a potential 469.12% upside.
Summary of Peers Analysis
The peer analysis summary provides a snapshot of key metrics for Sweetgreen, Arcos Dorados Holdings and Cracker Barrel Old, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Wendy's | Neutral | -2.11% | $147.98M | 20.14% |
| Sweetgreen | Neutral | 5.36% | $29.69M | -5.70% |
| Arcos Dorados Holdings | Neutral | -0.44% | $119.71M | 2.72% |
| Cracker Barrel Old | Neutral | 0.49% | $269.09M | 2.70% |
Key Takeaway:
Wendy's ranks in the middle for revenue growth among its peers. It has the highest gross profit margin. Wendy's has the highest return on equity compared to its peers.
All You Need to Know About Wendy's
The Wendy's Company is the second-largest burger quick-service restaurant, or QSR, chain in the United States by systemwide sales, with $12.6 billion in 2024, narrowly edging Burger King ($11.5 billion) and clocking in well behind wide-moat McDonald's ($51.1 billion). After divestitures of Tim Hortons (2006) and Arby's (2011), the firm manages just the burger banner, generating sales across a footprint that spanned more than 7,200 total stores in 30 countries as of year-end 2024. Wendy's generates revenue from the sale of hamburgers, chicken sandwiches, salads, and fries throughout its company-owned footprint, through franchise royalty and marketing fund payments remitted by its franchisees, which account for roughly 94% of stores, and through franchise flipping and advisory fees.
Wendy's's Financial Performance
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Challenges: Wendy's's revenue growth over 3 months faced difficulties. As of 31 March, 2025, the company experienced a decline of approximately -2.11%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 7.49%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Wendy's's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 20.14% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Wendy's's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.79%, the company may face hurdles in achieving optimal financial returns.
Debt Management: Wendy's's debt-to-equity ratio is notably higher than the industry average. With a ratio of 31.3, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
To track all earnings releases for Wendy's visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
