Wendy's Is Undervalued Compared To Peers, Analyst Says While Flagging Some Concerns

Argus Research analyst John Staszak upgraded The Wendy's Co WEN to Buy from Hold at a price target of $26.
The analyst is bullish on the fast-food chain's store expansion, solid international growth, increased digital business investment, and a breakfast service focus.
Also, Staszak believes WEN shares are undervalued at 23x its 2023 EPS estimate, below the restaurant chains' peer average.
However, the analyst sees competitive pressure, commodity inflation, and higher labor and utility costs as a matter of concern.
Last week, Wendy's reported first-quarter FY23 sales growth of 8.2% year-on-year to $528.81 million, beating the consensus of $522.43 million on strong international performance.
Post Q1 earnings, BMO Capital raised the price target on Wendy's to $24 from $23 at a Market Perform rating, and Credit Suisse increased the price target to $25 from $24 at a Neutral rating.
Also read: Wendy's Wants To Kiss Queues Goodbye With Underground AI-Powered Robot Deliveries
Price Action: Wendy's shares are trading higher by 0.15% at $23.54 on last check Friday.
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