This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Restaurant Stocks: Earnings to Watch

Wendy's Arby's Group

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Wendy's Arby's (WEN) reported quarterly earnings Nov. 12.

Revenue: $861.2 million, compared with year-earlier sales of $903.2 million.

Net Loss: $900,000, compared with year-earlier earnings of $14.7 million.

Net Loss Per Share: 0 cents, compared with year-earlier earnings per share of 3 cents.

Analysis: Deutsche Bank's Jason West had a buy rating on Wendy's Arby's ahead of its report. Analysts from UBS reiterated a neutral rating on Wendy's Arby's shares several days ahead of its earnings announcement, raising their price target on the stock by 50 cents to $5.

Wendy's booked a surprise loss and adjusted its forecast , saying 2010 results would likely come in toward the low end of its previously announced guidance.

>>Wendy's Disappoints With Surprise Loss

At Wendy's restaurants, comps fell 1.7% and declined 5.9% at Arby's restaurants.

CEO Roland Smith said "third-quarter results are simply not satisfactory to us," and that the company continued to work on its long-term growth potential, expanding its breakfast platform at Wendy's, remodeling stores of both brands, and expanding internationally.

He added that the Arby's brand turnaround remained a key focus and was showing some progress with comps up 5.5% in October. Wendy's and Arby's merged in a $2 billion deal in September 2008.

The company now expects fiscal 2010 adjusted earnings before interest, taxes, depreciation and amortization to be at the lower end of its previously announced range, which was for a 3% to 5% decline compared with fiscal 2009 EBITDA of $411.6 million. Analysts' consensus call was for EBITDA of $400.2 million for fiscal 2010.

Same-store sales at Wendy's North America company-operated restaurants are expected to decline 1% in fiscal 2010. Arby's should post negative same-store sales but show a year-over-year improvement.

Analysts from UBS reiterated a neutral rating on Wendy's Arby's shares several days ahead of its earnings announcement, raising their price target on the stock by 50 cents to $5.

9 of 22

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs