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Argus cuts Wendy’s to Hold as U.S. sales weaken, outlook lowered
['Tue', 'Sept', 'Min Read']
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Investing.com --Argus downgraded Wendy’s to Hold from Buy, citing soft U.S. sales and traffic that are weighing on results despite gains overseas.
U.S. sales fell 3% and same-store sales dropped 3.6%, offset only partly by a 9% increase in international sales.
Argus said Wendy’s valuation looks inexpensive, but the company faces rising costs, a leadership transition, and stiff competition.
“We would consider returning the stock to our buy list if U.S. sales show a turnaround and international sales pick up,” the analysts at Argus said.
However, near-term trends are more problematic”Related articlesArgus cuts Wendy’s to Hold as U.S. sales weaken, outlook loweredShould Disney shut down ABC?
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