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Wendy's (WEN) Reports Next Week: Wall Street Expects Earnings Growth
WENWendy’s(WEN) ZACKS·2025-02-06 16:05

Core Viewpoint - Wendy's is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended December 2024, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for February 13, 2025, with expectations that better-than-expected results could drive the stock price higher, while disappointing results may lead to a decline [2]. - The Zacks Consensus Estimate predicts quarterly earnings of 0.24pershare,reflectingayearoveryearincreaseof14.30.24 per share, reflecting a year-over-year increase of 14.3%, and revenues are expected to reach 564.17 million, up 4.4% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 0.9%, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Wendy's is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +2.34%, suggesting a bullish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - Wendy's currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Wendy's met the expected earnings of 0.25pershare,resultinginnosurprise,andhasonlybeatenconsensusEPSestimatesonceinthelastfourquarters[12][13].IndustryContextRestaurantBrands,acompetitorinthesameindustry,isexpectedtoreportearningsof0.25 per share, resulting in no surprise, and has only beaten consensus EPS estimates once in the last four quarters [12][13]. Industry Context - Restaurant Brands, a competitor in the same industry, is expected to report earnings of 0.79 per share for the same quarter, indicating a year-over-year change of +5.3%, with revenues projected at $2.29 billion, up 26% from the previous year [17]. - The consensus EPS estimate for Restaurant Brands has been revised down by 0.7% over the last 30 days, and it currently has a negative Earnings ESP of -2.56%, combined with a Zacks Rank of 4 (Sell), making it difficult to predict an earnings beat [18].