Wendy’s downgraded to In Line at Evercore, prefers share gainers

As previously reported, Evercore ISI analyst David Palmer downgraded Wendy’s (WEN) to In Line from Outperform with a $25 price target. His base case macro scenario entering 2023 calls for restaurant industry growth slowing from mid-single digit same-store sales growth in Q4 to low-single digits in 2023 along with diminishing input inflation. In this content, Palmer prefers names that are likely to gain share and/or benefit from easing inflation or favorable international exposure, he tells investors, calling out Yum! Brands (YUM), Chipotle (CMG) and Starbucks (SBUX) as his top three picks in the space for 2023.