WEN Stock Hits Near Six-Year Low Ahead Of Q4 Earnings – Wall Street Expects Stuggles To Continue

Wendy’s is not the favourite pick this year for analysts or investors, with the company’s results expected to remain challenging as it tries to find a permanent CEO.

• Wall Street estimates Wendy’s to post a revenue of $536.7 million, a 6.5% decline from a year ago, and earnings per share are expected to be $0.14, according to data from Fiscal AI.
• Stifel said fourth-quarter comparable results in the restaurant space would be strong, with the notable exception of Wendy's, which is likely to continue to struggle.
• In late January, Wendy’s said it continues to make progress in its CEO selection process and that the board is reviewing a strong slate of both internal and external candidates.

Shares of Wendy’s closed down nearly 8% on Thursday, marking their worst single-day decline in nearly six years, ahead of the company’s quarterly results the next day, as Wall Street and retail traders grow wary about the burger chain’s struggles amid the overall industry’s underperformance. 

Consumers are looking to eat at home more rather than dine out to save money as they continue to battle rising prices across the board due to U.S. President Donald Trump’s tariffs on trading partners.

Even McDonald’s CFO Ian Borden said on Wednesday that the overall industry in the U.S. and many other markets remained challenging. However, McDonald’s beat on quarterly results, mainly driven by its value meal offerings, which have attracted lower-income consumers – a cohort that has withdrawn from spending more.

The stock closed at $7.27 on Thursday, its lowest level since March 2020, when the COVID-19 pandemic led many restaurants to close stores to avoid infection and face a demand hit.

Wendy’s Earnings Preview

The restaurant chain is expected to post its fourth-quarter results on Friday before markets open. Wall Street estimates Wendy’s to post a revenue of $536.7 million, a 6.5% decline from a year ago, and earnings per share (EPS) are expected to be $0.14, a dip from the $0.25 a year earlier, according to data from Fiscal AI.

Last week, Stifel lowered the firm's price target on Wendy's to $9 from $11 and maintained a ‘Hold’ rating, according to TheFly. The firm said it expects fourth-quarter comparable results in the restaurant space to be strong, with the notable exception of Wendy's, which is likely to continue to struggle.

Wendy’s is also trying to take a chunk of the market by offering value deals and, in January, announced the introduction of a new Biggie Deals value menu. The company is offering its burgers and fries at $4, $6, and $8 price points.

The CEO Search

Wendy's CEO Kirk Tanner left the company last year to take the helm at Hershey. The company then named Ken Cook, its chief financial officer, as interim CEO. Cook, who remains CFO, joined the company in December 2024. 

In late January, Wendy’s said it continues to make progress in its CEO selection process and that the board is reviewing a strong slate of both internal and external candidates.

What Is Retail Thinking?

Retail sentiment around Wendy’s jumped to ‘extremely bullish’ from ‘bullish’ territory a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

A user on Stocktwits said that they were not sold on their drive-thru AI strategy and that “people still want a personal touch.” In late 2023, the company launched Wendy’s FreshAi as an assistant to help its crew members working the drive-thru. 

A bullish user said that they bought more stocks rather than selling before the earnings.

Shares of Wendy’s have lost 49% of their value in the last 12 months and have shed nearly 13% so far this year.

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