The firm said it lowered its rating on the fast food chain based on the company's uncertain outlook, and cost concerns regarding Wendy's remodeling plans.
Argus also said Wendy's franchising could continue to weigh on sales in upcoming quarters.
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Separately, TheStreet Ratings team rates WENDY'S CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate WENDY'S CO (WEN) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."