Wendy’s price target lowered to $20 from $22 at Stephens

Stephens analyst Joshua Long lowered the firm’s price target on Wendy’s to $20 from $22 given its now lower 2024 EBITDA estimate, while keeping an Overweight rating on the shares. Management delivered a solid bridge to growing FY24 global same-store sales through increased investment in breakfast. At the same time, peers have pointed to headwinds during the day-part due to a softer macro, Stephens says. The firm believes the new CEO will have to balance the incremental breakfast spend while also trying to regain share in the burger category. That said, Stephens thinks the company’s strategic priorities of growing breakfast and late-night sales, menu innovation, continued growth in higher margin digital sales, and unit growth expectations can drive sales, EBITDA, and earnings growth, going forward.