The Wendy's Co Class A

WEN: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$25.00	Tycs	Nyjtkfvq

Wendy's Earnings: Solid Digital and International Progress Encouraging; Shares Slightly Cheap

Sean Dunlop

Nov 2, 2023

We don't expect to make any material changes to our $21.50 fair value estimate for no-moat Wendy's after digesting third-quarter earnings. The firm posted solid results, with $551 million in revenue and $0.27 in adjusted EPS edging our $538 million and $0.24 estimates, respectively, but with the firm maintaining its full-year guidance, we expect only a modest upward revision to our prior $2.14 billion and $0.95 diluted EPS full-year estimates. Shares trade at about an 11%-12% discount to our intrinsic valuation after a modest uptick in trading after the release.

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