Argus Lowers Wendy’s (WEN) Rating, Cites Competition and Leadership Changes
The Wendy’s Company (NASDAQ:WEN) ranks among the top NASDAQ stocks with low P/E ratios. Argus lowered The Wendy’s Company (NASDAQ:WEN)’s from Buy to Hold on September 23 owing to weak U.S. sales and traffic that are affecting the company’s performance despite overseas gains.
The fast-food giant reported second-quarter revenue 2% lower than the previous year, with global sales falling 1.8%. U.S. sales dipped 3%, while same-store sales fell 3.6%, partially offset by a 9% increase in overseas sales.
According to Argus, although Wendy’s valuation appears low, the company is dealing with growing expenses, a change in leadership, and fierce competition. If U.S. sales show a rebound and international sales pick up, the firm stated that it would consider adding the company back to its buy list.
The Wendy’s Company (NASDAQ:WEN) is a chain of quick-service restaurants that operates in the United States as well as overseas. The company operates through three primary segments: Global Real Estate & Development, Wendy’s International, and Wendy’s U.S.
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