Wendy's Report Will Show If Its Strategy Is Pure Beef or More Sizzle

On Wednesday, Wall Street gets an array of earnings, including Wendy's, which will reveal how its long-term projects are paying off, and whether McDonald's is eating into its market share.
By U-Jin Lee ,

A host of well-known companies are scheduled to report earnings Wednesday, from an array of industries. Among the major businesses reporting before the market opens are Allergan (AGN) - Get Report , Twenty-First Century Fox (FOXA) - Get Report , Time Warner (TWX) , Michael Kors (KORS) , Lumber Liquidators (LL) - Get Report , and Wendy's (WEN) - Get Report . Then in the afternoon, we hear from Facebook (FB) - Get Report , Qualcomm (QCOM) - Get Report and Whole Foods Market (WFM) .

When Wendy's reports its third quarter results, analysts expect to see earnings of 8 cents a share on revenue of $438 million. Profits are expected to stay the same from a year ago, while the top line is projected to drop. One factor to keep in mind is that higher prices for its ingredients, like beef, have been weighing down on the burger chain's margins. In the 2014's third quarter, the company earned 8 cents a share on revenue of $512.49 million.

"I think the important thing for Wendy's like all other restaurants is same-stores sales," said TheStreet's Scott Berman, portfolio analyst for Jim Cramer's Action Alerts PLUS portfolio. "Now, it's especially important for Wendy's because they've invested in long-term projects, like the remodeling of their stores to make them look more modern. Now, the company has done well in the past for same-stores sales, but they've guided lower for the second half of the year, so it will be very interesting to see where that figure comes in. I think investors will also be looking for commentary on whether McDonald's (MCD) - Get Report has taken share away from them with their initiatives like all-day breakfast."

Additionally, several key economic reports will come out Wednesday. In the morning, we'll get the Mortgage Bankers Association's weekly application survey at 7 a.m., followed by the ADP employment report at 8:15 a.m. and the international trade report at 8:30 a.m. Then at 10 a.m., Fed Chair Janet Yellen will testify before House Financial Services Committee on regulatory issues.

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