Latest news with #WEN
Yahoo
15-07-2025
- Business
- Yahoo
1 Restaurant Stock with Exciting Potential and 2 to Approach with Caution
Restaurants increase convenience and give many people a place to unwind. But the side dish is that they're quite difficult to operate because high inventory and labor costs generally lead to thin margins at the store level. This leaves little room for error if demand dries up, and it seems like the market has some reservations as the industry's returns were flat over the past six months while the S&P 500 was up 5.4%. Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. With that said, here is one restaurant stock boasting a durable advantage and two best left ignored. Market Cap: $2.09 billion Founded by Dave Thomas in 1969, Wendy's (NASDAQ:WEN) is a renowned fast-food chain known for its fresh, never-frozen beef burgers, flavorful menu options, and commitment to quality. Why Are We Wary of WEN? Poor same-store sales performance over the past two years indicates it's having trouble bringing new diners into its restaurants Demand is forecasted to shrink as its estimated sales for the next 12 months are flat High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens Wendy's is trading at $10.95 per share, or 10.7x forward P/E. Dive into our free research report to see why there are better opportunities than WEN. Market Cap: $3.18 billion Celebrated for its delicious (and free) brown bread, gigantic portions, and delectable desserts, Cheesecake Factory (NASDAQ:CAKE) is an iconic American restaurant chain that also owns and operates a portfolio of separate restaurant brands. Why Is CAKE Not Exciting? Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings At $64.30 per share, The Cheesecake Factory trades at 16.7x forward P/E. If you're considering CAKE for your portfolio, see our FREE research report to learn more. Market Cap: $12.5 billion With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks. Why Will TXRH Outperform? Offensive push to build new restaurants and attack its untapped market opportunities is backed by its same-store sales growth Same-store sales growth over the past two years shows it's successfully drawing diners into its restaurants ROIC punches in at 18.7%, illustrating management's expertise in identifying profitable investments, and its returns are growing as it capitalizes on even better market opportunities Texas Roadhouse's stock price of $194 implies a valuation ratio of 26.6x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Miami Herald
15-07-2025
- Business
- Miami Herald
Wendy's hopes to win back customers with free offer
Wendy's (WEN) , like many fast-food chains across the country, is battling a startling shift in customer behavior. In Wendy's first-quarter earnings report for 2025, it revealed that its same-store sales in the U.S. declined by almost 3% year-over-year, while total revenues declined by roughly 2%. Don't miss the move: Subscribe to TheStreet's free daily newsletter Also, according to recent data from foot traffic in Wendy's restaurants shrank by 4.6% year-over-year during the quarter, the steepest decline compared to its competitors such as KFC, Burger King, and Popeyes, which all also suffered waning customer visits. Related: Domino's Pizza announces big menu change after major loss During an earnings call in May, Wendy's Chief Financial Officer Ken Cook said that the fast-food chain is operating in "a challenging environment." "During the first quarter, QSR burger traffic was below these industry forecasts, driven by the combination of adverse winter weather in the first half of the quarter and a pullback in consumer demand," said Cook. He said that the company has noticed that customers who have an annual income of under $75,000 were the most pressured financially during the quarter. The low consumer demand comes after fast-food prices increased by almost 47% over the past decade. To address this alarming consumer trend, Wendy's is making some major changes to win back frugal customers. "In response to changing consumer behavior, we're launching a new one hundred days of summer campaign to provide customers even more of our fresh, famous food through core innovation, collaborations, and value offerings at a time when our customers need it most," said Wendy's CEO Kirk Tanner during the earnings call. Image source:As part of this new strategy, Wendy's has announced the return of a generous offer for customers to boost its low sales. Through the Wendy's app, customers can now claim an offer that includes free fries (excluding seasoned potatoes, topped fries and Fuego Fries) with any purchase. The deal is available every Friday until the end of the year. Customers can use the offer for a mobile order or load it to their digital card and scan it at a register in stores. Related: Chick-fil-A angers customers with major change in stores In April last year, Wendy's launched the same offer, which lasted until the end of 2024. The move from Wendy's comes during a time when it is offering a buy one, get one free 10-piece chicken nuggets deal through its app. It also recently announced a collaboration with Takis to created a limited-time Takis Fuego meal, which consists of a Takis Fuego Chicken sandwich and Takis Fuego fries. It is no surprise that Wendy's is boosting its innovation and deals to repair weak consumer demand. According to data from Ipsos Consumer Tracker last year, 34% of U.S. consumers have cut back on having dinner at fast-food restaurants. Also, 30% said they have avoided getting dinner from takeout or delivery, while 45% said they cook dinner at home more frequently. More Food + Dining: Papa Johns makes major menu change to win back customersSteak 'n Shake's beef tallow fries aren't as healthy as they appearChick-fil-A angers customers with major change in stores "Over 40% of low-income U.S. adults claim to be visiting quick service restaurants (QSRs) less often for dinner and lunch than at the start of this year,"said Wendy Wallner, a executive vice president at Ipsos, in the survey. Wendy's is one of many fast-food chains that have been betting big on deals to reverse consistent low sales. Just last month, Domino's Pizza announced the return of its beloved "Best Deal Ever" promotion, which is set to last until Aug. 3, after revealing that its U.S. same-store sales declined by 0.5% year-over-year during the first quarter. The deal offers pizza with any toppings for $9.99 when customers order online. Earlier this year, McDonald's, which has faced declining sales over the past few financial quarters, launched a McValue menu. It introduced its Buy One, Add One for $1 deal, which offers an item of customers' choosing for $1 when they purchase another full-priced menu item. Related: Pizza Hut makes big menu change amid startling customer behavior The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
10-07-2025
- Business
- Yahoo
Can Wendy's Digital Push and Gamified App Lift Engagement and Sales?
The Wendy's Company (WEN) is leaning on digital investments to improve engagement and drive sales as consumer traffic remains under pressure. In the first quarter of 2025, the company continued to enhance its digital channels, with app engagement reaching an all-time high. The digital mix rose to more than 20% of total sales, supported by new features that encourage customer interaction beyond the point of purchase. A key development is the gamification of the Wendy's app. This feature was introduced to deepen user engagement and build repeat visits. The app now offers more personalized content and targeted digital messaging, which the company believes is helping improve conversion rates. Another major focus is the rollout of Fresh AI and digital menu boards. As of the first quarter, Wendy's deployed Fresh AI in 168 locations and remains on track to reach more than 500 by year-end. The technology suggests curated add-ons at the point of ordering, which is already leading to higher average checks. It also aims to improve order accuracy and crew productivity, two areas linked directly to customer satisfaction. Wendy's plans to scale its digital initiatives throughout 2025. The combination of gamified engagement, personalized app features and in-store technology is expected to support stronger customer loyalty and lift average spend. As adoption increases, the digital platform is set to play a larger role in driving long-term growth. Digital transformation continues to shape strategies across the restaurant space, with Yum! Brands, Inc. (YUM) and BJ's Restaurants, Inc. (BJRI) focusing on operational upgrades and guest engagement. Yum! Brands is benefiting from strong performance at its KFC and Taco Bell divisions, along with continued growth in digital sales. The company is expanding its Byte platform with AI-powered personalization and loyalty integration. A new partnership with NVIDIA is expected to accelerate Yum! Brands' AI adoption across drive-thrus, kitchens and restaurant management, supporting faster service and improved team productivity. BJ's Restaurants is advancing digital upgrades across systems to streamline service and control costs. Enhancements to POS and kitchen display tools have improved order speed and accuracy, while also lowering food and beverage comp costs. In select markets, BJ's Restaurants is using AI-driven labor scheduling and forecasting to boost efficiency and guest sentiment. Off-premise digital experience remains a focus, with broader improvements planned later in the year. Wendy's shares have lost 12.2% in the past three months against the industry's growth of 4.6%. Image Source: Zacks Investment Research WEN is currently priced at a discount relative to its industry. It has a forward 12-month price-to-earnings ratio of 11.31, which is well below the industry average. Image Source: Zacks Investment Research The Zacks Consensus Estimate for 2025 earnings per share has remained stable in the past 30 days. Image Source: Zacks Investment Research The company currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report Yum! Brands, Inc. (YUM) : Free Stock Analysis Report The Wendy's Company (WEN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
South China Morning Post
04-07-2025
- South China Morning Post
Sri Lankan man arrested at Thai airport after 3 snakes found in his underwear
Sri Lankan man has been arrested at an airport in Thailand after allegedly trying to smuggle three snakes out of the country by concealing them in his underwear. The man was stopped at Bangkok's Suvarnabhumi Airport on Wednesday after a body search revealed three ball pythons, stored in net bags, hidden on his person. The suspect, identified only as Shehan, was apprehended by the Thailand Wildlife Enforcement Network (WEN), authorities said in a Facebook post on Thursday. Authorities received intelligence on Tuesday that a Sri Lankan man with a history of animal trafficking had arrived in Bangkok shortly after midnight that day. The WEN coordinated a multi-agency monitoring effort, tracking Shehan's movements on suspicion of wildlife smuggling. A Sri Lankan man is being questioned by Thai authorities after three ball pythons were found in his underwear at Bangkok's Suvarnabhumi Airport. Photo: Thailand Department of National Parks, Wildlife and Plant Conservation Ball pythons are classified as a species listed under Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora. They cannot be exported or imported without an official permit. For attempting to export wildlife without permission, the suspect may face up to 10 years in prison, a fine of up to 1 million baht (US$30,900), or both. He also may be charged with attempting to export goods without a customs permit, punishable by up to one year in prison, a fine of up to 20,000 baht, or both. This is not the first time Shehan has been caught attempting to traffic exotic animals internationally. According to the Bangkok Post, background checks revealed he was arrested last year in Colombo, Sri Lanka, in relation to a case where officials seized a range of wildlife which included wolves, meerkats, cockatoos, sugar gliders, porcupines and iguanas.
Business Insider
25-06-2025
- Business
- Business Insider
RBC Capital Keeps Their Hold Rating on Wendy's (WEN)
In a report released on June 23, Logan Reich from RBC Capital maintained a Hold rating on Wendy's (WEN – Research Report), with a price target of $14.00. The company's shares closed yesterday at $12.38. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Reich covers the Consumer Cyclical sector, focusing on stocks such as Starbucks, Domino's Pizza, and Chipotle. According to TipRanks, Reich has an average return of -10.8% and a 40.00% success rate on recommended stocks. Wendy's has an analyst consensus of Hold, with a price target consensus of $14.53. WEN market cap is currently $2.31B and has a P/E ratio of 12.82. Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of WEN in relation to earlier this year. Last month, Kenneth M. Cook, the CFO of WEN bought 1,500.00 shares for a total of $17,025.00.
