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Wendy's Stock Sees Post-Earnings Pressure

Wendy's stock could see improvement after breakfast menu launch

Deputy Editor
Feb 26, 2020 at 10:30 AM
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Shares of Wendy’s Co (NASDAQ:WEN) are down 2.3% this morning, last seen at $22.42. The fast-food chain forecast a weaker-than-expected full-year outlook, but revealed fourth-quarter earnings that were in-line with estimates. Meanwhile, Wendy’s also reported bigger-than-expected capital costs on for the year, as they roll out a new breakfast menu in the hopes to battle competitors McDonald’s (MCD) and Dunkin’ Brands (DNKN).

The stock sports a healthy 32% year-over-year lead, much of which is thanks to long-term support at the 100-day moving average. In fact, the equity just yesterday touched a record high of $24.03. Analysts have yet to chime in, but heading into today were divided on their outlook for WEN, as eight recommend a “buy,” and 11 a tepid “hold.”

In the options pits, data at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows WEN with a 50-day call/put ratio of 11.76. This ratio is in the 99th percentile of its annual range, meaning calls have been preferred over puts during the past 10 weeks.

 

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