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The Wendy's Company (WEN)

  • Wed, Apr. 8, 10:51 AM
    • McDonald's (MCD +0.5%) will add premium burgers to its menu in a trial run.
    • The sirloin products are expected to hit menus on May 12 and be priced around $5 by the company while franchisees can set their own prices.
    • The McDonald's premium burger lineup: The Steakhouse Third Pound (sauteed mushrooms, white cheddar, grilled onions, peppercorn sauce), The Bacon & Cheese Sirloin Third Point (bacon,red onion, white cheddar), The Lettuce & Tomato Sirloin Third Pound (leaf lettuce, tomato, red onion, white Cheddar, pickles mayo, beef seasoning).
    • Shake Shack (SHAK -1.7%), Wendy's (WEN -0.9%), and Hardee's are active in the premium burger category.
  • Thu, Apr. 2, 10:08 AM
    • The wage increases announced by McDonald's (MCD -0.4%) will account for about a 1% earnings headwind in 2016, according to an estimate from Credit Suisse.
    • The company only runs about 10% of its U.S. stores and the initiative doesn't impact stores in global markets.
    • Fast-food chains with a high concentration of company-owned stores in the U.S. could feel some pressure to match the wage policy of McDonald's, notes CS.
    • To varying degrees, those chains could include Sonic (NASDAQ:SONC), Jack in the Box (NASDAQ:JACK), Wendy's (NASDAQ:WEN), Denny's (NASDAQ:DENN), Popeyes Louisiana Kitchen (NASDAQ:PLKI), Taco Bell (NYSE:YUM), and Burger King (NYSE:QSR).
    • Previously: McDonald's raises wages in U.S. (Apr. 01 2015)
  • Sat, Mar. 7, 10:13 AM
    • A powerhouse quarter of improved comps and widened margins is in the books for the restaurant industry as investors look forward to see if the trend extends.
    • The industry is in a growth phase with eating and drinking establishments adding 58.7K jobs in February on a seasonally adjusted basis to mark the biggest monthly gain since December of 2012.
    • The early read on Q1 traffic is favorable (ex-weather), although chains could see some wage inflation pressure and innovation outlays with differentiated concepts popping up at Habit Restaurants (NASDAQ:HABT), Zoe's Kitchen (NYSE:ZOES), Shake Shack (NYSE:SHAK), and a host of others.
    • Major digital initiatives at chains such as Panera Bread (NASDAQ:PNRA) and Starbucks (NASDAQ:SBUX) also have the potential to be disruptive.
    • A few screens to pick through the restaurant stock menu are listed below.
    • Lowest forward P/E ratio: McDonald's (NYSE:MCD), Ruth's Hospitality (NASDAQ:RUTH), and Cracker Barrel (NASDAQ:CBRL).
    • Lowest price/free cash flow ratio: Ruby Tuesday (NYSE:RT), Nathan's (NASDAQ:NATH), Jack in the Box (NASDAQ:JACK).
    • Dividend yield +3%: DineEquity (NYSE:DIN), Darden Restaurants (NYSE:DRI), McDonald's, and Arcos Dorados (NYSE:ARCO).
    • Top YTD performers: Jack in the Box (JACK), Wendy's (NASDAQ:WEN), Sonic (NASDAQ:SONC), El Pollo LoCo (NASDAQ:LOCO).
    • PEG ratio below 2.00: Chuy's Holdings (NASDAQ:CHUY), Ruth's Hospitality, Krispy Kreme Donuts (NYSE:KKD), Cheesecake Factory (NASDAQ:CAKE), Brinker International (NYSE:EAT), Denny's (NASDAQ:DENN), Buffalo Wild Wings (NASDAQ:BWLD).
    • Short ratio below 2%: Yum Brands (NYSE:YUM), Jack in the Box (JACK), Chipotle (NYSE:CMG), DineEquity, Bloomin' Brands (NASDAQ:BLMN), Denny's (DENN), McDonald's (MCD).
    • Previously: Restaurant stocks continue hot streak (Feb. 24)
  • Thu, Mar. 5, 8:29 AM
    • A deeper dive into the Beige Book notes indicates some wage pressure is being seen in the U.S. at low-level positions, notes Bloomberg.
    • The revelation could explain the round of minimum wage hikes over the last month - most notably at retail giant Wal-Mart.
    • Analysts note that even a minor lift at the bottom of the wage structure puts some pressure that ripples up the chain.
    • Beige Book: "A staffing firm in the Chicago District reported some companies were also willing to raise rates for unskilled workers to reduce turnover, and contacts in the Atlanta District noted increasing entry-level wages."
    • Fast-food chains could be the next domino to fall.
    • Previously: Beige Book takes note of oil prices and dollar (Mar. 04 2015)
    • Related stocks: MCD, SONC, JACK, WEN, QSR, YUM, PZZA.
    | 1 Comment
  • Mon, Feb. 23, 5:30 PM
  • Thu, Feb. 19, 9:28 AM
    • Shares of McDonald's (NYSE:MCD) are on watch after Wal-Mart announces a broad increase in hourly wages for its U.S. workers.
    • The two companies have been the largest targets of labor protests over the last year over their wage policies.
    • Fast-food chains Wendy's (NASDAQ:WEN), Burger King (NYSE:QSR), and Taco Bell (NYSE:YUM) have also seen more demonstrations than the remainder of the sector.
  • Wed, Feb. 18, 4:41 PM
    • Wendy's (NASDAQ:WEN) declares $0.06/share quarterly dividend, in line with previous.
    • Forward yield 1.95%
    • Payable March 16; for shareholders of record March 2; ex-div Feb. 26.
    | 1 Comment
  • Wed, Feb. 18, 10:46 AM
    • Restaurants stocks are out-performing as a group after Jack in the Box, Qdboa, Tim Hortons, and Burger King all reported comparable-restaurant sales momentum this week.
    • The recent round of earnings from the sector has confirmed analyst predictions of a benefit from lower gas prices in the U.S.
    • The developments have also made the recent performance by McDonald's ((NYSE:MCD) -0.2%) look even more anemic.
    • Previously: Let's talks $2 gas (Nov. 29 2014)
    • Previously: Restaurant sales show sharp increase in January (Feb. 11 2015)
    • Leading gainers: Jack in the Box (NASDAQ:JACK) +6.0%, BJ's Restaurants (NASDAQ:BJRI) +3.6%, Sonic (NASDAQ:SONC) +2.6%, Texas Roadhouse (NASDAQ:TXRH) +2.2%, Brinker International (NYSE:EAT) +2.1%, Luby's (NYSE:LUB) +2.0%, Wendy's (NASDAQ:WEN) +1.5%, Cheesecake Factory (NASDAQ:CAKE) +1.4%, Nathan's Famous (NASDAQ:NATH) +1.3%, Ark Restaurants (NASDAQ:ARKR) +1.3%.
  • Thu, Feb. 12, 9:43 AM
  • Wed, Feb. 11, 10:37 AM
  • Thu, Feb. 5, 9:26 AM
    • Susquehanna lifts its rating on Wendy's (NASDAQ:WEN) to Positive from Neutral.
    • Earlier this week, Wedbush set Wendy's at Buy and Stephens upgraded to Overweight.
    • Wendy's comp sales didn't dazzle in Q4 (except compared to MCD), but restaurant-level margin gains were seen.
    • WEN +2.5% premarket and +20.8% YTD.
  • Tue, Feb. 3, 11:15 AM
    • The integration of mobile ordering is a major theme in the restaurant industry this year.
    • Starbucks (NASDAQ:SBUX) and Domino's Pizza (NYSE:DPZ) have raised the bar the highest, while peers have gone into chase mode.
    • Today, Wendy's (NASDAQ:WEN) reported a significant 3% sales lift in a 35-unit test run of an app order/dedicated drive-through program (h/t Barbarian Capital, Wendy's Investor Day webcast ).
    • Two companies struggling with their drive-through windows due to kitchen complexity, Panera Bread (NASDAQ:PNRA) and McDonald's (NYSE:MCD), have their eyes on in-store ways to boost sales. In the case of McDonald's, the plan is to use self-order kiosks.
    • Chipotle (NYSE:CMG) reports Q4 results after the bell today where there will be a focus on if the company's new mobile app had any impact on pick-up orders.
    | Comment!
  • Tue, Feb. 3, 7:49 AM
    • Wendy's (NASDAQ:WEN) plans to sell another 500 restaurants to its franchisees.
    • The announcement is part of a company goal to own just 5% of its stores by the middle of 2016 in order to reduce costs and smooth out cash flow.
    • Wendy's turned a +1.9% comp in Q4 vs. -1.7% for McDonald's (closely overlapping).
    • Previously: Wendy's -1.5% after issuing preliminary results
    • WEN -1.5% premarket.
  • Tue, Feb. 3, 6:53 AM
    • Wendy's (NASDAQ:WEN) reports preliminary results for Q4.
    • Revenue -15% to $502M vs. $509M consensus.
    • EBITDA +20.3% to $107.1M.
    • EPS in-line at $0.10.
    • The company reports same-restaurant sales increased 1.9% during the quarter.
    • North American restaurant margin +50 bps to 16.8%.
    • 2015 guidance: EBITDA of $390M-$400M expected. EPS of $0.33-$0.35 vs. $0.39 consensus.
    • WEN -1.5% premarket.
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  • Fri, Jan. 23, 11:25 AM
  • Thu, Jan. 22, 8:26 AM
    • The largest fast food company in the Philippines is hungry for an U.S. acquisition, according to a regulatory filing.
    • Jollibee, which has strong sales and organic growth rates in SE Asia, would like to target a QSR player with a market value of at least $1B to make its U.S. entry.
    • Hedgeye advises that Krispy Kreme (NYSE:KKD), Wendy's (NASDAQ:WEN), Popeyes Louisiana Kitchen (NASDAQ:PLKI), Sonic (NASDAQ:SONC), and Jack in the Box (NASDAQ:JACK) are in play.
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Company Description
Wendy's Co franchises and operates company-owned Wendy's quick-service restaurants specializing in hamburger sandwiches throughout North America.
Sector: Services
Industry: Restaurants
Country: United States