Frosty Outlook For Wendy's: Underwhelming Q4 Results Amid Rising Digital Sales And Global Expansion
Portfolio Pulse from Lekha Gupta
Wendy's Co (NASDAQ:WEN) reported Q4 FY23 results with a slight sales growth of 0.8% to $540.7 million, missing analyst estimates. Adjusted EPS of $0.21 also fell short of expectations. Despite challenges, the company saw digital sales acceleration and global expansion, opening nearly 250 new restaurants. The company expects FY24 adjusted EPS of $0.98-$1.02, below consensus estimates, and projects 5%-7% global systemwide sales growth. Shares dropped 2.05% to $18.89.
February 15, 2024 | 5:01 pm
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NEGATIVE IMPACT
Wendy's reported underwhelming Q4 FY23 results with sales and EPS missing estimates, despite digital sales growth and global expansion. The company's FY24 outlook is also below consensus estimates.
The underperformance in Q4 FY23 results and the lower-than-expected FY24 outlook could lead to negative investor sentiment in the short term, impacting the stock price negatively.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100