Wendy's (WEN) Gears Up for Q3 Earnings: What's in Store?

The Wendy's Company WEN is scheduled to report third-quarter 2021 results on Nov 10, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 50%.

Q3 Estimates

The Zacks Consensus Estimate for third-quarter earnings is pegged at 19 cents per share, flat year over year.

The consensus mark for revenues stands at $471.4 million, suggesting an improvement of 4.2% from the year-ago quarter.

Factors to Note

Wendy’s third-quarter performance is likely to have benefited from increased focus on menu innovation, technological upgrades and international expansion. The company’s emphasis on Breakfast daypart offerings might have contributed to growth. It has also been benefiting from its marketing efforts, high-quality offerings, repeat ordering and high customer satisfaction levels.

Robust global same-restaurant sales growth may get reflected in the to-be-reported quarter’s results. Increased customer counts and higher average checks are likely to have driven the company’s margin.

The Zacks Consensus Estimate for Franchise royalty revenue and fees is pegged at $137 million, indicating an improvement of 17.1% year over year. The consensus mark for Advertising funds revenues stands at $98 million, suggesting growth of 15.3% year over year.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Wendy’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for Wendy’s is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combination

Here are some other companies in the Zacks Retail and Wholesale sector, which according to our model, have the right combination of elements to post an earnings beat.

Costco Wholesale Corporation COST has an Earnings ESP of + 1.00% and a Zacks Rank #2.

Jack in the Box Inc. JACK has an Earnings ESP of +5.08% and a Zacks Rank #3.

DICK'S Sporting Goods, Inc. DKS has an Earnings ESP of +17.35% and a Zacks Rank #3.