Wendy's Q4 Preview: Can It Deliver McDonald's‑Level Innovation and Loyalty?

Core Viewpoint - Wendy's is expected to report a decline in fourth-quarter revenue and earnings per share, with analysts noting a mixed performance in past quarters [2][3]. Group 1: Earnings Estimates - Analysts predict Wendy's fourth-quarter revenue will be $540.79 million, a decrease from $574.27 million [2]. - The expected earnings per share for the fourth quarter is 15 cents, down from 25 cents a year earlier [2]. - Wendy's has beaten revenue estimates in two consecutive quarters but missed in six of the last ten periods [2]. Group 2: Analyst Ratings and Price Targets - Analysts have been reducing their price targets for Wendy's ahead of the earnings report [3]. - Citigroup maintained a Neutral rating and lowered the price target from $9 to $8 [6]. - Morgan Stanley maintained an Underweight rating and also lowered the price target from $9 to $8 [6]. - Mizuho maintained an Underperform rating, reducing the price target from $8 to $7 [6]. Group 3: Competitive Context - Wendy's earnings results will be released shortly after McDonald's reported strong quarterly earnings, which included a 5.7% year-over-year increase in global comparable sales [3]. - Wendy's may leverage its earnings call to emphasize its value proposition and strategies to attract new customers and retain existing ones [4]. Group 4: Promotions and Customer Engagement - The company may highlight successful promotions, such as the 67 cent Frosty, which was available for all customers for one day and extended for loyalty members [5]. - There is potential for Wendy's to demonstrate how such promotions have positively impacted loyalty membership during the quarter [5]. Group 5: Stock Performance - Wendy's shares have increased by 1% to $7.96, but the stock has decreased by 44% over the past 52 weeks [6]. - In contrast, McDonald's shares have risen by 2% and are up 8.7% over the last 52 weeks, trading near all-time highs [6].