Yahoo Finance Earnings To Watch: Wendy's (WEN) Reports Q2 Results Tomorrow
Fast-food chain Wendy’s (NASDAQ:WEN) will be announcing earnings results tomorrow morning. Here's what to expect.
Wendy's missed analysts' revenue expectations by 1.1% last quarter, reporting revenues of $534.8 million, up 1.1% year on year. It was a good quarter for the company, with an impressive beat of analysts' gross margin estimates and a decent beat of analysts' earnings estimates.
Is Wendy's a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Wendy's revenue to grow 2.7% year on year to $576.8 million, slowing from the 4.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Wendy's has missed Wall Street's revenue estimates six times over the last two years.
Looking at Wendy's peers in the traditional fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. McDonald's posted flat year-on-year revenue, missing analysts' expectations by 2.1%, and Domino's reported revenues up 7.1%, in line with consensus estimates. McDonald's traded up 5.7% following the results while Domino's was down 14.6%.
Read our full analysis of McDonald's results here and Domino's results here.
There has been positive sentiment among investors in the traditional fast food segment, with share prices up 2.9% on average over the last month. Wendy's is up 7.1% during the same time and is heading into earnings with an average analyst price target of $20.3 (compared to the current share price of $17.45).
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