Countdown to Wendy's (WEN) Q2 Earnings: A Look at Estimates Beyond Revenue and EPS

Core Viewpoint - Analysts project that Wendy's will report quarterly earnings of $0.25 per share, reflecting a year-over-year decline of 7.4%, with revenues expected to reach $555.52 million, down 2.7% from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 0.8% over the past 30 days, indicating a collective reassessment by analysts [2]. - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Revenue Projections - Analysts estimate that revenues from company-operated restaurants will be $230.36 million, a decrease of 3% year-over-year [5]. - Projected revenues from advertising funds are estimated at $110.57 million, reflecting a decline of 3.9% from the prior year [5]. - Franchise rental income is expected to reach $60.37 million, indicating a slight decrease of 0.4% from the previous year [6]. - Franchise royalty revenue and fees are projected at $153.65 million, down 2.6% from the same quarter last year [6]. Restaurant Metrics - The total number of restaurants is projected to be 7,336, an increase from 7,261 reported in the same quarter last year [7]. - The number of international restaurants is estimated at 1,367, up from 1,236 year-over-year [7]. - The consensus for total franchised restaurants stands at 6,933, compared to 5,614 in the same quarter last year [8]. - The number of company-operated restaurants is expected to be 402, slightly up from 399 year-over-year [8]. Systemwide Sales - Analysts forecast that systemwide sales for international company-operated restaurants will reach $7.19 million, compared to $6.20 million last year [9]. - Systemwide sales for U.S. company-operated restaurants are expected to be $223.77 million, down from $231.20 million year-over-year [9]. Stock Performance - Wendy's shares have shown a return of -10.6% over the past month, contrasting with the Zacks S&P 500 composite's increase of +1.2% [10]. - With a Zacks Rank of 4 (Sell), Wendy's is anticipated to underperform the overall market in the near future [10].