The Wendy’s Company Third Quarter Earnings Sneak Peek

The Wendy’s Company (NYSE:WEN) will unveil its latest earnings on Wednesday, November 9, 2011. Wendy’s Arby’s Group is a quick service restaurant company, which is comprised of the Wendy’s and Arby’s brands.

The Wendy’s Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 4 cents per share, a decline of 20% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting net income of 15 cents per share, a rise of 7.1% from last year.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the second quarter, it missed the mark by one cent as a result of reporting profit of 5 cents against an estimate of net income of 6 cents per share. In the first quarter, the company fell short of forecasts by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $619.3 million in revenue this quarter, a decline of 28.1% from the year ago quarter. Analysts are forecasting total revenue of $2.43 billion for the year, a decline of 28.5% from last year’s revenue of $3.4 billion.

Analyst Ratings: Analysts seem relatively indifferent about Wendy’s Company with 10 of 17 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit rose 4.9% to $11.3 million (3 cents a share) from $10.7 million (3 cents a share) the year earlier, but fell short analyst expectations. Revenue fell 29% to $622.5 million from $877 million.

Key Stats:

Wendy’s Company’s profit last quarter followed losses in the three previous quarters. The company reported a loss of $1.4 million in the first quarter, a loss of $10.8 million in the fourth of the last fiscal year and a loss of $909,000 in the third quarter of the last fiscal year.

Revenue fell in the second quarter after seeing a rise the quarter before. In the first quarter, revenue rose 1.2%.

Competitors to Watch: McDonald’s Corporation (NYSE:MCD), Good Times Restaurants Inc. (NASDAQ:GTIMD), Carrols Restaurant Group, Inc. (NASDAQ:TAST), Tim Hortons Inc. (NYSE:THI), Yum! Brands, Inc. (NYSE:YUM), Jack in the Box Inc. (NASDAQ:JACK), Panera Bread Company (NASDAQ:PNRA), Chipotle (NYSE:CMG), Starbucks (NASDAQ:SBUX) and Nathan’s Famous, Inc. (NASDAQ:NATH).

Stock Price Performance: During August 10, 2011 to November 3, 2011, the stock price had risen 89 cents (19.6%) from $4.53 to $5.42. The stock price saw one of its best stretches over the last year between June 10, 2011 and June 21, 2011 when shares rose for eight-straight days, rising 12.9% (+58 cents) over that span. It saw one of its worst periods between May 31, 2011 and June 10, 2011 when shares fell for nine-straight days, falling 10.2% (-51 cents) over that span. Shares are up 86 cents (+18.9%) year to date.

(Source: Xignite Financials)

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