WEN - Wendy's gains after attracting bull call from Argus

2023-05-19 07:44:02 ET

Argus turned bullish on The Wendy's Company ( NASDAQ: WEN ) with an upgrade on Friday on the restaurant stock to a Buy rating from Hold.

Analyst John Staszak and team expect Wendy's ( WEN ) to benefit from unit expansion, strong international growth, and investments in its digital business. The restaurant chain's focus on breakfast service is also seen boosting same-store sales.

In terms of valuation, Staszak said Wendy's ( WEN ) shares are undervalued at 23X the firm's 2023 EPS estimate, which is below the average for peer restaurant chains. Wendy's ( WEN ) shares are noted to also carry a dividend with a yield of about 4.3%, well above the restaurant peer average of 1.8%.

Argus assigned a price target of $26 to the restaurant stock vs. the average Wall Street price target on Wendy's of $25.20.

Shares of Wendy's ( WEN ) moved up 1.32% in premarket trading to $23.81 vs. the 52-week trading range of $16.06 to $23.90.

More on Wendy's:

• The Wendy's Company: Scaled Market Penetration Drives Systemwide Sales Growth
• More articles from Seeking Alpha analysts
• Growth metrics on Wendy's
• Wendy's earnings call transcript
• Seeking Alpha's Quant Rating for Wendy's

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