Wendy’s (WEN) stock increased 1.31% on Friday, despite the company issuing a warning that it will face tougher financial conditions for the rest of 2025. In its latest earnings report, Wendy’s reduced its global systemwide sales growth forecast to between 3% and 5% year-over-year, down from previous expectations.
The company also lowered its adjusted earnings per share guidance to 82 cents to 89 cents per share, compared to a prior estimate of 92 cents to 98 cents. This move is seen as a negative sign for the fast-food chain.
However, Wendy’s Q2 earnings report showed some positive results, with adjusted EPS of 29 cents on revenue of $560.9 million, beating Wall Street’s estimates. The company’s stock price has still fallen 35.92% year-to-date and 41.82% over the past 12 months due to inflation and economic factors.
Analysts give Wendy’s a “Hold” rating, with an average stock price target of $12.63, representing a potential 24.68% upside for the shares.
Source: https://www.tipranks.com/news/wen-earnings-wendys-stock-jumps-despite-guidance-cut