Posted on Thursday, August 11th, 2011 at 3:40 pm.
Wendy’s reported a lower Q3 EPS than analysts predicted.
Wendy’s reported a Q3 EPS of $0.04, missing analyst estimates of $0.05 per share. Revenues for the quarter rose 2.5 percent to $622.50 million, missing consensus estimates of $758.24 million.
President and Chief Executive Officer of The Wendy’s Company, Roland Smith, released a statement this week saying: “We were pleased to produce a 2.3 percent same-store increase at Wendy’s North America Company-operated restaurants in the second quarter of 2011, which represents the brand’s best sales performance since the fourth quarter of 2008. Importantly, we generated positive transactions during the quarter, which we believe reflect the cumulative benefit of our ‘Real’ brand positioning and significant core menu improvements.”
Wendy’s/Arby’s Group has a potential upside of 24.9 percent based on a current price of $4.63 and an average consensus analyst price target of $5.79. The company is currently below its 50-day moving average of $5.06 and below its 200-day MA of $4.89. The 50-day MA has fallen 0.46 percent in the last five trading sessions. The 200-day MA has remained constant.
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