WEN - Embedded Expectations Analysis - 2020 03 12
ï€ The Wendy's Company (WEN:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 29.1x Uniform P/E, implying bullish expectations for the firm. However, management may be concerned about their national breakfast launch, international sales, and free cash flowï€ Specifically, management may be concerned about their national breakfast launch, their restaurant opening time strategy, and the progress of their global restaurant expansion. Moreover, they may be exaggerating their ability to double international sales by 2024, sustain free cash flow generation, and continue to build awareness of their digital platforms. Finally, they may be downplaying concerns about the impact of increases in incentive compensation
The Wendy's is a holding company. The company's subsidiary, Wendy's Restaurants, LLC, is the parent company of Wendy's International, LLC (Wendy's), which is the owner and franchisor of the Wendy's? restaurant system in the U.S. Wendy's is a quick-service restaurant company in the hamburger sandwich segment. Each Wendy's restaurant provides a menu featuring hamburger sandwiches and filet of chicken breast sandwiches. Wendy's menu also includes chicken nuggets, chili, french fries, baked potatoes, salads, soft drinks, Frosty? desserts and kids' meals. In addition, the restaurants sell a variety of promotional products.Wendy's also provides breakfast in some restaurants in the U.S.
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