A Wendy’s prudent update is the last sign of concern for fast food actions

• JpMorgan analysts updated Wendy actions on Monday after the latest Rapid Food Results Report.

• However, they also cut their price in the midst of uncertainty about the fast food industry.

• Last week, McDonald’s and Wendy reported disappointing sales, and Wendy said that sales no longer awaits this year.

Wendy’s (Unrest) The actions were updated by JpMorgan analysts on Monday, but the update also obtained a lower price goal as analysts remain cautious in an uncertain fast food industry.

Last week, Wendy’s and making burgers McDonald’s rival ((MCD) They reported weaker sales of the first quarter than the analysts expected. McDonald’s said he has seen economic pressures extended Of low and middle income consumers, and Wendy said that it could see sales decrease instead of growing in 2025.

JpMorgan analysts updated Wendy’s actions on “overweight” of “neutral” on Monday, but said that they are now waiting for actions to reach $ 15 by the end of 2026, rather than $ 17.

Analysts are slightly more bullies than the average of Wendy’s shares, which has a consensus price target of about $ 14, according to alpha visible data. The goal, above the closure of Wendy Friday, of $ 12.55, comes when analysts are divided into how to evaluate the shares with two “purchase”, four “and three sales valuations.

Wendy’s current price “provides value-oriented opportunity, as we see a significant advantage,” said JpMorgan analysts, adding that the fast food giant has space to improve Free cash flow With a “bigger focus on franchise accounts” and its international footprint grows. However, analysts pointed out a decrease of 2% of fast food traffic compared to the last quarters and pre-pandemic levels as a reason to be cautious.

Wendy’s shares increased by 3% in early negotiation on Monday. However, they have lost approximately one fifth of their value since the beginning of the year.

Read the original item at Investopedia