Wendy’s downgraded to Market Perform from Outperform at Bernstein

Bernstein downgraded Wendy’s to Market Perform from Outperform with a price target of $20, down from $24. The analyst cites lowered expectations on same-store sales and unit growth as well as a lack of clear catalysts for multiple expansion in the near term for the downgrade. The firm believes Wendy’s expected growth in breakfast is too optimistic and the same-store-sales growth algorithm is too dependent on the breakfast acceleration. The company’s target of 50% increase in average weekly breakfast sales per unit in the next two “years might be too ambitious,” the analyst tells investors in a research note.