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Deutsche Bank downgraded Wendy’s (NASDAQ:WEN) on Tuesday, offering a more cautious view on the restaurant operator despite strong same-store sales and a dividend boost announced on Friday.
The bank’s analysts took its rating to Hold from a prior Buy in a note on Tuesday morning. After a big jump for the stock following its preannouncement on Friday, equity analyst Brian Mullan said that shares appear fairly-valued in his view.
“Despite gross openings of 38 units in the quarter, net units in the U.S. segment were down by 3 units total, implying elevated domestic closure activity,” equity analyst Brian Mullan noted. “In order, we thought domestic comps were ‘good’, company owned RLMs were ‘fine’ and domestic units were ‘underwhelming,’ which is just our take.”
The bank’s $23 price target went unchanged, as the stock traded essentially in-line with the target on Tuesday.
Read more on the details of the pre-announcement.
Image and article originally from seekingalpha.com. Read the original article here.