shares were downgraded to hold from buy at Stifel after shares rocketed 25.9% on Tuesday, but analysts say sales from the breakfast menu are growing, aided by a 10% year-over-year increased marketing spend and “the habitual nature of breakfast usage.” Wendy’s launched its latest breakfast offering in March 2020. “Thus far, the company has seen encouraging data that indicates the morning daypart has contributed to an overall increase in consumer frequency without cannibalizing occasions in the core business,” Stifel said. “The company will likely start using menu innovation in 2022 as an additional lever to drive new and existing users to the daypart.” Stifel quotes Wendy’s executives, who say that reaching a 10% mix for the breakfast menu by 2022 is “very realistic.” And analysts say that “the company’s future growth profile is compelling.” Stifel maintained its $25 price target. Wendy’s stock soared for seemingly a variety of reasons unrelated to breakfast, including, perhaps, a ticker mix-up. Wendy’s shares fell 7.3% in early Wednesday trading, and have gained 22% for the year to date. The S&P 500 index
is up 12.7% for 2021 so far.
This is not a CAPTIS article. Originally, it was published here.