Wendy's Hit With A Downgrade at JPMorgan

Wendy's Hit With A Downgrade at JPMorgan Feb. 21, 2024, 10:37 a.m., readers: 14

Wendy's (NASDAQ:WEN) received a downgrade to Neutral from Overweight by JPMorgan, with the price target adjusted to $19 from $22. the analysts cited increasing competitive pressures and capital intensity as reasons for the stock's expected range-bound performance. the bank's analysis pointed to Wendy's Q4 2023 results, which showed a mixed performance in US and international comps. The report suggests a consumer shift towards value, influenced by the differential in year-over-year grocery pricing compared to quick-service restaurant (QSR) pricing. This trend is leading QSRs, including Wendy's, to revert to pre-Covid menu pricing strategies to attract customers.

About NASDAQ: WEN

T he Wendy's Company, together with its subsidiaries, operates as a quick-service restaurant company. It operates through three segments: Wendy's U.S., Wendy's International, and Global Real Estate & Development. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches.

Price: 18.82
Market cap: 3.9 billion USD
Eps: 0.97
P/e ratio: 19.40
Focus Analysis On: WEN