Wendy's Arby's Group
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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV