Zacks Investment Research upgraded shares of The Wendy's Co. (WEN) from NEUTRAL to OUTPERFORM on May 20, 2013, with a target price of $7.25.
We are upgrading our recommendation on Wendy's from Neutral to Outperform based on decent first-quarter 2013 results and increased earnings guidance despite a volatile US quick-service restaurant industry. Wendy s first-quarter 2013 adjusted earnings and revenues grew year over year, driven by positive comps and margin expansion. Wendy's has outlined a multi-year turnaround plan to improve its restaurant operating margins, reinvigorate brands, revitalize same-store sales and expand internationally. The sale of the Arby's chain to enable complete focus on the core Wendy's business introduction of a new menu, price value proposition and focus on late-night daypart hold potential for growth. Extensive refurbishment of units is also in the cards. The company is also focused on enhancing shareholder value through dividends.
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