Wendy's Gears Up for Q4 Earnings: What's in the Offing for the Stock?

Core Viewpoint - Wendy's Company (WEN) is set to report its fourth-quarter 2024 results on February 13, with expectations of earnings and revenue growth compared to the previous year [1][2]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for earnings is 24 cents per share, reflecting a 14.3% increase from the same quarter last year [2]. - Revenue is expected to reach $564.2 million, indicating a 4.4% improvement year-over-year [2]. Group 2: Performance Drivers - Wendy's fourth-quarter performance is anticipated to be supported by menu innovation, technological upgrades, and international expansion [3]. - The introduction of new products, such as the Krabby Patty Burger and Pineapple Under the Sea Frosty, is expected to positively impact sales [3]. Group 3: Same-Restaurant Sales Growth - The company is likely to report robust same-restaurant sales growth, with U.S. systemwide same-restaurant sales predicted to increase by 1.9% and international sales by 2.9% compared to the prior year [4]. - Higher average checks, driven by pricing strategies and product innovations, are expected to contribute to this growth [4]. Group 4: Sales Expectations - Total U.S. sales are projected to rise by 3%, while international sales are expected to increase by 11.9% year-over-year [5]. - However, inflationary pressures are anticipated to negatively affect the bottom line, with total costs and expenses expected to rise by 1.9% year-over-year [5]. Group 5: Earnings Prediction Model - The Zacks model suggests a potential earnings beat for Wendy's, with an Earnings ESP of +2.34% [6]. - Wendy's currently holds a Zacks Rank of 3, indicating a neutral outlook [7].