Bernstein lowered the firm’s price target on Wendy’s (WEN) to $18 from $22 and keeps a Market Perform rating on the shares. After a dismal 2024, the restaurants sector looks relatively inexpensive, the firm says. Bernstein expects improvement in demand to be backloaded in the second half of 2025. Further, the firm believes in improving profitability, low single digit commodity inflation and low to mid-single digit of labor cost inflation in 2025, while we are wary that unit growth may slow. Policies may shake profitability for the sector, but effects are likely to materialize only in 2026-plus, Bernstein adds.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on WEN:
- Apple downgraded, Intel upgraded: Wall Street’s top analyst calls
- Wendy’s downgraded to Underweight from Equal Weight at Morgan Stanley
- Wendy’s price target lowered to $19 from $20 at Evercore ISI
- Wendy’s price target lowered to $17 from $18 at Stifel
- Wendy’s price target lowered to $17 from $20 at UBS