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.
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.
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