The Wendy’s Company (WEN – Free Report) is scheduled to report fourth-quarter 2024 results on Feb. 13, before the opening bell. In the last reported quarter, the company’s earnings were in line with the Zacks Consensus Estimate.
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WEN’s Q4 Estimates
The Zacks Consensus Estimate for earnings is pegged at 24 cents per share, indicating an increase of 14.3% from the year-ago level.
The consensus mark for revenues is pegged at $564.2 million, implying an improvement of 4.4% from the year-ago quarter’s figure.
Factors to Note Ahead of WEN’s Q4 Results
Wendy’s fourth-quarter performance is likely to have been driven by a focus on menu innovation, technological upgrades and international expansion. The emphasis on Breakfast daypart offerings, cost management and strategic pricing bode well. In early November 2024, Wendy’s launched the Krabby Patty Burger and Pineapple Under the Sea Frosty in regards to celebrate SpongeBob’s 25th anniversary. These efforts are likely to have aided the top line.
Robust global same-restaurant sales growth is likely to be reflected in the to-be-reported quarter’s results. Higher average checks (backed by carryover pricing) and product innovations are likely to have aided the same-restaurant sales. Our model predicts total U.S. systemwide same-restaurant sales and International systemwide same-restaurant sales to have increased 1.9% and 2.9%, respectively, from the prior-year levels.
On the other hand, we expect total U.S. sales and International sales to rise 3% and 11.9%, respectively, from the year-earlier levels. However, inflationary pressures are likely to have negatively impacted the bottom line in the quarter under discussion. Our model predicts total costs and expenses to increase 1.9% year over year. For fiscal 2024, the company still anticipates labor inflation to be in the range of 3-5%.
The Wendy’s Company Price and Consensus
The Wendy’s Company price-consensus-chart | The Wendy’s Company Quote
What Does the Zacks Model Unveil for WEN?
Our proven model predicts an earnings beat for Wendy’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: WEN has an Earnings ESP of +2.34%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: WEN currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks With Favorable Combination
Here are a few other stocks from the Zacks Retail-Wholesale sector, which, according to our model, also have the right combination of elements to post an earnings beat this reporting cycle.
Floor & Decor (FND – Free Report) has an Earnings ESP of +4.39% and a Zacks Rank of 3 at present.
FND is expected to register a 23.5% decrease in earnings for the to-be-reported quarter. It reported an earnings beat in each of the trailing four quarters, delivering an average surprise of 12.2%.
Home Depot (HD – Free Report) currently has an Earnings ESP of +10.28% and a Zacks Rank of 2.
HD reported an earnings beat in each of the trailing four quarters, delivering an average surprise of 2.3%. Its earnings for the to-be-reported quarter are expected to grow 8.9%.
Williams-Sonoma, Inc. (WSM – Free Report) currently has an Earnings ESP of +1.36% and a Zacks Rank of 3.
WSM’s earnings for the to-be-reported quarter are expected to grow 5.5%. It reported earnings beat in each of the trailing four quarters, the average surprise being 17.8%.
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