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The Wendy’s Consumer Is Recognizing Improved Value And Quality

By Jim Swanson – May 12 2016

Wendys Co WEN 1.25% reported its 1Q results ahead of expectations.

 

RBC Capital’s David Palmer maintains an Outperform rating on the company, with a price target of $12.
 

 

Same-Store Sales

 

The analyst maintained the 2Q same-store sales growth estimate of 2.5 percent, marginally below the company’s full-year guidance of 3 percent.

 

Palmer cautioned, however, the Wendy’s same-store sales growth was likely to slow in April, in line with the industry. The expectation was for the April fast food industry same-store growth to come in at about 1 percent, after rising 3.5 percent in 1Q.

 

 

Value & Quality

 

RBC Capital’s recent proprietary research with Mission Measurement suggests that Wendy’s has improved its value and quality scores.

 

Read the full feature here.

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