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Wendy's (WEN) to Announce Q2 Earnings: What's in Store?
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The Wendy's Company (WEN - Free Report) is scheduled to report second-quarter 2024 results on Aug 1, 2024, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 9.5%.
How are Estimates Placed?
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at 28 cents in the past 30 days. The estimated figure is in line with earnings reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $577.3 million, suggesting growth of 2.8% from the prior-year quarter’s figure.
Factors to Note
Wendy’s second-quarter top line is expected to increase year over year, driven by menu innovation initiatives, digital efforts and expansion into international markets. The company's emphasis on breakfast offerings is likely to have played a role in driving incremental sales. Additionally, its focus on capitalizing on marketing strategies, quality menu offerings, consistent repeat business and strong customer satisfaction are likely to have contributed to growth.
Robust global same-restaurant sales growth is likely to be reflected in the to-be-reported quarter’s performance. Increased customer counts and higher average checks are likely to have driven the company’s margin. Our model predicts total U.S. systemwide same-restaurant sales and International systemwide same-restaurant sales to increase 1.9% and 2.1% from prior-year levels, respectively.
We expect total U.S. sales and International sales to rise 3% and 18.2% to $482.9 million and $38.7 million from year-earlier levels, respectively.
However, inflationary pressures on commodity and labor are likely to have put pressure on the bottom line in the quarter under discussion. For second-quarter 2024, our model predicts total costs and expenses to increase 4.6% year over year to $473.2 million. We expect general and administrative expenses to increase 9.3% year over year to $68.6 million.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Wendy’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for WEN is -2.04%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat:
Beacon Roofing Supply, Inc. (BECN - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank of 3.
BECN’s earnings for the quarter under review are expected to increase 6% year over year. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 12.1%.
Brinker International, Inc. (EAT - Free Report) has an Earnings ESP of +8.02% and a Zacks Rank of 1.
EAT's to-be-reported quarter's earnings are expected to register 18.7% growth from the year-ago levels. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 213.3%.
Yum! Brands, Inc. (YUM - Free Report) has an Earnings ESP of +1.33% and a Zacks Rank of 3.
YUM’s earnings for the to-be-reported quarter are expected to decline 6.4% year over year. The company reported better-than-expected earnings in two of the trailing four quarters and missed the mark twice, the average surprise being 3.8%.
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Wendy's (WEN) to Announce Q2 Earnings: What's in Store?
The Wendy's Company (WEN - Free Report) is scheduled to report second-quarter 2024 results on Aug 1, 2024, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 9.5%.
How are Estimates Placed?
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at 28 cents in the past 30 days. The estimated figure is in line with earnings reported in the year-ago quarter.
The Wendy's Company Price and EPS Surprise
The Wendy's Company price-eps-surprise | The Wendy's Company Quote
For revenues, the consensus mark is pegged at $577.3 million, suggesting growth of 2.8% from the prior-year quarter’s figure.
Factors to Note
Wendy’s second-quarter top line is expected to increase year over year, driven by menu innovation initiatives, digital efforts and expansion into international markets. The company's emphasis on breakfast offerings is likely to have played a role in driving incremental sales. Additionally, its focus on capitalizing on marketing strategies, quality menu offerings, consistent repeat business and strong customer satisfaction are likely to have contributed to growth.
Robust global same-restaurant sales growth is likely to be reflected in the to-be-reported quarter’s performance. Increased customer counts and higher average checks are likely to have driven the company’s margin. Our model predicts total U.S. systemwide same-restaurant sales and International systemwide same-restaurant sales to increase 1.9% and 2.1% from prior-year levels, respectively.
We expect total U.S. sales and International sales to rise 3% and 18.2% to $482.9 million and $38.7 million from year-earlier levels, respectively.
However, inflationary pressures on commodity and labor are likely to have put pressure on the bottom line in the quarter under discussion. For second-quarter 2024, our model predicts total costs and expenses to increase 4.6% year over year to $473.2 million. We expect general and administrative expenses to increase 9.3% year over year to $68.6 million.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Wendy’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for WEN is -2.04%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: WEN currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat:
Beacon Roofing Supply, Inc. (BECN - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank of 3.
BECN’s earnings for the quarter under review are expected to increase 6% year over year. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 12.1%.
Brinker International, Inc. (EAT - Free Report) has an Earnings ESP of +8.02% and a Zacks Rank of 1.
EAT's to-be-reported quarter's earnings are expected to register 18.7% growth from the year-ago levels. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 213.3%.
Yum! Brands, Inc. (YUM - Free Report) has an Earnings ESP of +1.33% and a Zacks Rank of 3.
YUM’s earnings for the to-be-reported quarter are expected to decline 6.4% year over year. The company reported better-than-expected earnings in two of the trailing four quarters and missed the mark twice, the average surprise being 3.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.