Wendy’s(US:WEN) ZACKS·2025-10-10 16:15Core Insights - Wendy's Company has launched Project Fresh, a strategic initiative aimed at revitalizing the brand and driving long-term growth, with management expressing dissatisfaction with the current market valuation and a commitment to unlocking greater value [1][2] Group 1: Project Fresh Initiative - Project Fresh is designed to strengthen the Wendy's brand, expand the business, boost profitability, and enhance shareholder value [1] - The initiative focuses on brand revitalization, leveraging Wendy's heritage of quality and innovation to connect with the next generation of customers, with the assistance of consultancy Creed UnCo [3] - The plan includes reallocating resources to drive U.S. Average Unit Volume (AUV) growth, investing in hospitality, digital tools, and equipment efficiency, and cutting Build-to-Suit capital spending by $20 million in 2025, with further reductions in 2026 [3] Group 2: Market Challenges and Stock Performance - Wendy's stock has declined by 52.6% over the past year, compared to an 11.8% decline in the Zacks Retail - Restaurants industry, impacted by lower U.S. systemwide sales, weaker traffic trends, rising commodity costs, and wage inflation [4] - Despite these challenges, management remains optimistic that the new strategic initiatives will support long-term growth and create value for shareholders [4] Group 3: Zacks Rank and Comparisons - Wendy's currently holds a Zacks Rank of 5 (Strong Sell), indicating a negative outlook compared to better-ranked stocks in the Zacks Retail-Wholesale sector [6] - Comparatively, Red Robin Gourmet Burgers, Inc. has a Zacks Rank of 1 (Strong Buy) with a trailing four-quarter earnings surprise of 58.3% and a year-to-date stock increase of 22.6% [7] - Groupon also holds a Zacks Rank of 1, with a trailing four-quarter earnings surprise of 230.5% and a year-to-date stock surge of 79.2% [8]