Wendy's (WEN) Reports Next Week: What You Should Expect

Core Viewpoint - The market anticipates Wendy's to report flat earnings of $0.28 per share for the quarter ended June 2024, with revenues expected to rise by 2.8% to $577.28 million compared to the previous year [1][2]. Earnings Expectations - The consensus EPS estimate has been revised down by 0.57% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [2]. - The Most Accurate Estimate for Wendy's is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.04%, which complicates the prediction of an earnings beat [5][6]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [3][4]. - Wendy's currently holds a Zacks Rank of 4, indicating a less favorable outlook, which diminishes the likelihood of an earnings surprise [5][6]. Historical Performance - In the last reported quarter, Wendy's exceeded the consensus EPS estimate by delivering earnings of $0.23 per share against an expectation of $0.21, resulting in a surprise of +9.52% [7]. - Over the past four quarters, Wendy's has beaten consensus EPS estimates two times, suggesting some potential for positive surprises [7]. Conclusion - Despite the historical ability to occasionally beat estimates, Wendy's current combination of a negative Earnings ESP and a Zacks Rank of 4 suggests it may not be a compelling candidate for an earnings beat in the upcoming report [8].