Analyst Andrew Charles of TD Cowen maintained a Hold rating on Wendy’s, reducing the price target to $9.00.
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Andrew Charles’s rating is based on a combination of factors including Wendy’s recent sales performance and the broader industry challenges. While the company’s third-quarter sales were not as adversely affected as anticipated, the overall industry environment remains difficult, which influences the Hold rating. Wendy’s focus on collaborations and specialty products is noted, but there is uncertainty about achieving long-term growth targets, particularly in the domestic market despite international strengths.
Additionally, the company is implementing new strategies such as Project Fresh, aimed at revitalizing the brand and optimizing operations. However, the expected store closures in the U.S. and delayed product launches signal potential challenges ahead. The company’s efforts to improve same-store sales and operational procedures are encouraging, yet macroeconomic pressures and a cautious outlook on growth contribute to the Hold recommendation.
Charles covers the Consumer Cyclical sector, focusing on stocks such as CAVA Group, Inc., McDonald’s, and Dutch Bros Inc. According to TipRanks, Charles has an average return of 6.6% and a 49.50% success rate on recommended stocks.
In another report released on November 8, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $9.50 price target.