The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Wendy's met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP loss per share expanded.
Margins dropped across the board.
Wendy's tallied revenue of $636.3 million. The 15 analysts polled by S&P Capital IQ expected revenue of $639.8 million on the same basis. GAAP reported sales were 4.1% higher than the prior-year quarter's $611.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.03. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.05 per share. GAAP EPS were -$0.07 for Q3 against -$0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.8%, 30 basis points worse than the prior-year quarter. Operating margin was 6.7%, 250 basis points worse than the prior-year quarter. Net margin was -4.1%, 350 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $632.1 million. On the bottom line, the average EPS estimate is $0.04.
Next 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 580 members out of 721 rating the stock outperform, and 141 members rating it underperform. Among 160 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 126 give Wendy's a green thumbs-up, and 34 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 $5.07.
- Add Wendy's to My Watchlist.