Yahoo Finance Wendy's (WEN) to Report Q1 Earnings: What's in the Cards?
The Wendy's Company WEN is scheduled to report first-quarter 2023 results on May 10, before the opening bell. In the last reported quarter, the company’s bottom line beat the Zacks Consensus Estimate by 10%.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 20 cents, indicating a rise of 17.6% from the prior-year quarter’s reported value of 17 cents per share.
The consensus estimate for revenues is pegged at $525.6 million, suggesting growth of 7.6% from $488.6 million reported in the year-ago quarter.
Factors to Note
First-quarter 2023 results of Wendy's are most likely to benefit from higher sales at company-operated restaurants. Apart from that, higher same-restaurant sales, a rise in franchise royalty revenues, advertising funds revenues and solid digital initiatives are likely to have contributed to growth. The company’s initiative to expand its footprint is likely to have been a tailwind.
The Wendy's Company Price and EPS Surprise
The Wendy's Company price-eps-surprise | The Wendy's Company Quote
For the to-be-reported quarter, our model predicts sales at company-operated restaurants to increase 7.7% year over year to $225.4 million. Also, the franchise royalty and advertising funds revenues are predicted to increase 13.7% to $127 million and 12.3% to $103.9 million year over year, respectively.
The bottom line of the company is likely to have been affected by an increase in general and administrative (G&A) expenses. The increase in these expenses is likely to have been driven by a rise in salaries and benefits along with increased technology costs and travel expenses. These increases are likely to have negatively impacted the margins of the company in the to-be-reported quarter. For first-quarter 2023, our model predicts G&A expenses to increase 2.6% year over year.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Wendy's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Wendy's has an Earnings ESP of -0.50%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Wendy's currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Retail-Wholesale space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Chuy's Holdings, Inc. CHUY has an Earnings ESP of +1.71% and a Zacks Rank #2.
Shares of Chuy's Holdings have increased 48.2% in the past year. CHUY’s earnings beat the consensus mark in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 23.4%, on average.
BJ's Restaurants, Inc. BJRI has an Earnings ESP of +0.63% and a Zacks Rank #2.
Shares of BJ's Restaurants have increased 16.1% in the past year. BJRI’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 93%.
Brinker International, Inc. EAT has an Earnings ESP of +0.13% and a Zacks Rank #3.
Shares of Brinker have increased 11.5% in the past year. EAT’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 14.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report
Brinker International, Inc. (EAT) : Free Stock Analysis Report
The Wendy's Company (WEN) : Free Stock Analysis Report
Chuy's Holdings, Inc. (CHUY) : Free Stock Analysis Report
