Wendy's (Nasdaq: WEN ) is expected to report Q1 earnings on Feb. 28. 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 grow 4.8% and EPS will grow 100.0%.
The average estimate for revenue is $621.8 million. On the bottom line, the average EPS estimate is $0.02.
Revenue details
Last quarter, Wendy's notched revenue of $629.9 million. GAAP reported sales were 2.4% higher than the prior-year quarter's $615.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Last quarter, non-GAAP EPS came in at $0.08. GAAP EPS of $0.06 for Q4 were 500% higher than the prior-year quarter's $0.01 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Recent performance
For the preceding quarter, gross margin was 26.3%, 20 basis points better than the prior-year quarter. Operating margin was 9.1%, 110 basis points better than the prior-year quarter. Net margin was 3.6%, 300 basis points better than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $2.61 billion. The average EPS estimate is $0.18.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 591 members out of 735 rating the stock outperform, and 144 members rating it underperform. Among 175 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 136 give Wendy's a green thumbs-up, and 39 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 $4.94.
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Report this Comment On February 25, 2013, at 7:45 AM, EconoWizDanny wrote:
I don't think Wendy's is going to beat the estimates. After the essential elimination of the "dollar menu" and exchanging it for the slightly pricier ($.29 higher) "best value menu" is not a good sign.
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