Argus’ John Staszak believes Wendys Co
Staszak upgraded the rating on the company from Hold to Buy, with a price target of $15.
The analyst mentioned that by the end of 2016, franchisees would own 95 percent of all Wendy’s restaurants, with only 5 percent being company-owned.
“The sale of these restaurants has boosted free cash flow as franchisees bear the brunt of capital expenditures,” Staszak stated.
The sale proceeds have also provided the company resources for
Wendy’s and its franchisees are now looking at a major restaurant remodeling program, with 30 percent of the restaurants already having been remodeled.
The analyst noted that the remodeled restaurants have been generating higher revenues on average, as compared to the older locations.
“The company is also working to strengthen its brand through new product launches and stepped-up marketing,” Staszak went on to say.
The 2016 and 2017 EPS estimates have been raised from $0.38 to $0.42 and from $0.42 to $0.49, respectively.
Image Credit: By Checkingfax (Own work) [CC BY-SA 3.0], via
|Nov 2016||Argus Research||Upgrades||Hold||Buy|
|Aug 2016||Goldman Sachs||Maintains||Buy|
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