Wendy’s initiated with a Hold at Deutsche Bank

Deutsche Bank analyst Lauren Silberman initiated coverage of Wendy’s with a Hold rating and $20 price target. The analyst likes Wendy’s 95% franchised business model and consistent same-store-sales execution, and believes the company is well positioned to deliver on its long-term targets. However, Wendy’s has already implemented big initiatives over the last couple of years around breakfast and digital, and with SSS moderating across the industry, there is limited visibility into the catalyst path to support an inflection in sentiment, valuation multiple expansion or upside to numbers, the analyst tells investors in a research note.