Analysts on Wall Street project that Wendy's (WEN) will announce quarterly earnings of $0.25 per share in its forthcoming report, representing a decline of 7.4% year over year. Revenues are projected to reach $555.52 million, declining 2.7% from the same quarter last year.
The current level reflects a downward revision of 0.8% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
That said, let's delve into the average estimates of some Wendy's metrics that Wall Street analysts commonly model and monitor.
According to the collective judgment of analysts, 'Revenues- Sales at Company-operated restaurants' should come in at $230.36 million. The estimate indicates a change of -3% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Revenues- Advertising funds' of $110.57 million. The estimate indicates a year-over-year change of -3.9%.
The combined assessment of analysts suggests that 'Revenues- Franchise rental income' will likely reach $60.37 million. The estimate points to a change of -0.4% from the year-ago quarter.
Analysts predict that the 'Revenues- Franchise royalty revenue and fees' will reach $153.65 million. The estimate indicates a change of -2.6% from the prior-year quarter.
It is projected by analysts that the 'Number of restaurants - Total' will reach 7,336 . Compared to the present estimate, the company reported 7,261 in the same quarter last year.
The average prediction of analysts places 'Number of restaurants - International' at 1,367 . The estimate is in contrast to the year-ago figure of 1,236 .
The consensus estimate for 'Number of restaurants - Franchised - Total' stands at 6,933 . Compared to the present estimate, the company reported 5,614 in the same quarter last year.
Based on the collective assessment of analysts, 'Number of restaurants - Company-operated - Total' should arrive at 402 . The estimate is in contrast to the year-ago figure of 399 .
Analysts forecast 'Number of restaurants - US' to reach 5,967 . Compared to the present estimate, the company reported 6,013 in the same quarter last year.
Analysts' assessment points toward 'Systemwide sales - International Company-operated' reaching $7.19 million. The estimate compares to the year-ago value of $6.20 million.
Analysts expect 'Systemwide sales - U.S. Company-operated' to come in at $223.77 million. The estimate is in contrast to the year-ago figure of $231.20 million.
The consensus among analysts is that 'Number of restaurants - International Company-operated' will reach 14 . Compared to the current estimate, the company reported 12 in the same quarter of the previous year.
View all Key Company Metrics for Wendy's here>>>
Shares of Wendy's have demonstrated returns of -10.6% over the past month compared to the Zacks S&P 500 composite's +1.2% change. With a Zacks Rank #4 (Sell), WEN is expected to lag the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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The Wendy's Company (WEN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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