Wendy's (Nasdaq: WEN ) is expected to report Q2 earnings on Aug. 9. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Wendy's revenues will expand 3.9% and EPS will drop 0.0%.
The average estimate for revenue is $646.7 million. On the bottom line, the average EPS estimate is $0.05.
Last quarter, Wendy's reported revenue of $593.2 million. GAAP reported sales were 1.8% higher than the prior-year quarter's $582.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.01. GAAP EPS of $0.03 for Q1 were much higher than the prior-year quarter's $0.00 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 23.2%, 150 basis points worse than the prior-year quarter. Operating margin was 5.0%, 110 basis points worse than the prior-year quarter. Net margin was 2.1%, 230 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $2.51 billion. The average EPS estimate is $0.15.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 572 members out of 711 rating the stock outperform, and 139 members rating it underperform. Among 148 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 112 give Wendy's a green thumbs-up, and 36 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Wendy's is hold, with an average price target of $5.49.