Loop Capital Reiterates Buy Rating on Wendy's (WEN)

Loop Capital analyst Alton Stump reiterated a Buy rating and $26.00 price target on Wendy's (NASDAQ: WEN).

The analyst comments "Our Wendy’s U.S. franchisee checks indicate same-store sales growth is tracking in line with expectations to date in 3Q. We completed our latest round of checks with U.S. franchisees for Wendy’s. Per our contacts, same-store sales were up 2.0-2.5% to date in 3Q24 and are therefore tracking in line with our full-3Q estimate for 2.5% growth as well as consensus at up 2.1%. On a 2-year stacked basis 2.0-2.5% growth equates to a gain of 4.3-4.8%, down from WEN’s reported 2-year stacks of 5.7% in 2Q24. However, implied 3-year stacks of 10.6-11.1% QTD represents a meaningful acceleration from 7.9% growth reported in 2Q. We are maintaining our BUY rating and PT of $26 on WEN, based on 13.5x our 2025 EV/EBITDA estimate."

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Shares of Wendy's closed at $16.90 yesterday.

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