NEW YORK (TheStreet) -- Shares of Wendy's (WEN) - Get Report are down 2.10% to $9.78 in pre-market trading on Wednesday after the fast-food chain's stock rating was dropped to "neutral" from "buy" at Nomura.

The firm lowered its price target to $11 from $12.50 because of weak sales trends and tough comparisons for the second half of the year.

There are "concerns that Wendy's sales trends in Q2 -- while Street expectations have been lowered -- may not yet have been lowered enough," Nomura analysts wrote in a note released this morning.

"We take down our Q2 same-store sales forecasts for company-owned stores by 30bp, to +1.7%, placing us as the new 'low-on-the-sell-side' estimate according to Consensus Metrix data," analysts noted, adding that Wall Street is expecting a 2.5% increase.

For franchised locations, second quarter same-store sales are estimated to rise 1.2%, while the consensus calls for a 2.1% increase.

Nomura analysts also downgraded Papa John's (PZZA), McDonald's(MCD) and Domino's Pizza (DPZ) to "neutral" from "buy." Analysts selected Yum! Brands (YUM) as the "top large-cap restaurant pick."

Separately, Wendy's has a "buy" rating and a letter grade of B at TheStreet Ratings because of the company's reasonable valuation levels, good cash flow from operations, expanding profit margins, notable return on equity and impressive record of earnings per share growth.

You can view the full analysis from the report here: WEN

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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