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Wendy's (WEN) Stock Higher on RBC Capital Upgrade

NEW YORK (TheStreet) -- Wendy's (WEN - Get Report) stock is rising by 4.37% to $9.56 in midday trading on Monday, following an upgrade to "outperform" from "sector perform" at RBC Capital this morning.

The firm cut its price target to $11 from $12 on the stock in light of a higher sales risk from McDonald's (MCD) growth.

However, Wendy's value offerings have boosted traffic, and should help shield it from competition, RBC Capital said in a note.

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The quick-service restaurant company's same store sales likely benefited from its 4 for $4 promotion, which includes a Jr. Bacon Cheeseburger, chicken nuggets, fries and a drink, as well as lower discounting from competitors such as Burger King (BKW), according to the firm.

Wendy's is on its way toward 95% franchising by the fiscal 2016 second quarter, from 85% currently, but its overhead per system restaurant has remained near the high-end of peers, RBC Capital adds. The company's...


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