It appears that Wendy's/Arby's (WEN) is about to have a roast beef sale. The company announced this morning that it is considering selling the struggling Arby's chain in order to focus more on the Wendy's hamburger chain.

Both sides of the company's eateries, Wendy's and Arby's, have seen sales slump, but Arby's has had the most problems thanks mainly to sandwiches that can cost more than five bucks. With such a price tag , those sandwiches weren't selling wel in the current economic atmosphere.

Continue reading Wendy's/Arby's Group May Sell Arby's

Wendy's/Arby's Group May Sell Arby's originally appeared on BloggingStocks on Thu, 20 Jan 2011 09:30:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• UBS upgraded Potash (POT) to buy from neutral and raised its price target to $112 from $106. UBS raised its 2011 potash production estimates based on expectations for a tighter market and notes the potential for China to import substantial amounts of corn.
• BMO Capital upgraded Peabody Energy (BTU) to outperform from market perform. The firm, which has a $49 target on the stock, cites valuation for the upgrade.
• Janney Montgomery upgraded City Holding (CHCO) to buy from neutral with a $37 price target, citing the recent pullback in shares.
• Boston Scientific (BSX) was upgraded to sell from conviction sell at Goldman.
• Pegasystems (PEGA) was upgraded to buy from hold at Roth Capital.
• Wendy's/Arby's (WEN) was upgraded to buy from neutral at SunTrust.

Continue reading Analyst Calls: AOSL, BIDU, BSX, BTU, CHCO, EVVV, NXST, POT, PUK, RST, WEN ...

Analyst Calls: AOSL, BIDU, BSX, BTU, CHCO, EVVV, NXST, POT, PUK, RST, WEN ... originally appeared on BloggingStocks on Wed, 09 Jun 2010 11:30:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Janney Montgomery upgraded MasterCard (MA) to buy from neutral. The firm has a $250 price target on the stock.
• Lazard upgraded Frontline (FRO) to hold from sell following the better than expected Q1 report.
• Knight Capital (NITE) was upgraded at BMO Capital to outperform from market perform. The firm cites valuation and improved fundamentals for the downgrade. The firm has an $18 price target on the stock.
• Royal Dutch Shell (RDS.A) was upgraded to overweight from equal weight at Barclays.
• Carnival (CCL) was upgraded to neutral from sell at Goldman.
• Computer Sciences (CSC) was upgraded to buy from hold at Stifel Nicolaus.

Continue reading Analyst Calls: MA, FRO, NITE, RDS.A, CCL, DWA, VLCM, WEN, C, PG, ENOC ...

Analyst Calls: MA, FRO, NITE, RDS.A, CCL, DWA, VLCM, WEN, C, PG, ENOC ... originally appeared on BloggingStocks on Fri, 21 May 2010 09:00:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Blockbuster Inc. (BBI) Q1 net loss was in line with estimates and same-store sales declined, shares also fell.
• CA Inc. (CA) shares sold off on high volume following the Q4 earnings miss and disappointing guidance.
• Cigna Corp. (CI) reported better-than-expected Q1 earnings and higher revenue, and reaffirmed its full-year outlook.
• Cisco Systems Inc. (CSCO) beat Q3 earnings and revenue expectations in the "strongest quarter in our history."
• Dean Foods Co. (DF) lower Q1earnings beat analysts' estimates, but shares fell on heavy volume afterward.
• Denny's Corp. (DENN) bested consensus estimates and year-ago EPS by a penny, but said same-store sales fell.

Continue reading Earnings Highlights: BBI, CI, CSCO, DIS, DISH, ERTS, JCP, M, NVDA, PCLN, WEN, WFMI ...

Earnings Highlights: BBI, CI, CSCO, DIS, DISH, ERTS, JCP, M, NVDA, PCLN, WEN, WFMI ... originally appeared on BloggingStocks on Sat, 15 May 2010 13:40:00 EST. Please see our terms for use of feeds.

Continue reading Back on Fast-Food Menus: Roller Skates

Back on Fast-Food Menus: Roller Skates originally appeared on BloggingStocks on Tue, 13 Apr 2010 18:00:00 EST. Please see our terms for use of feeds.

Continue reading Can Value Menu Turn Around Arby's?

Can Value Menu Turn Around Arby's? originally appeared on BloggingStocks on Tue, 13 Apr 2010 11:30:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Berkshire Hathaway Inc. (BRK.A) announced improved results year over year, with book value up nearly 20%.
• BJ's Wholesale Club Inc. (BJ) Q4 earnings were in line with expectations but guidance for the year fell short.
• Cbeyond Inc. (CBEY) received an analyst's downgrade and lowered price target following its Q4 results.
• Costco Wholesale Corp. (COST) strong Q2 results fell short of analysts' estimates and shares declined.
• Dress Barn Inc. (DBRN) said it swung to a profit in Q2 and same-store sales increased, and it raised its outlook.

Continue reading Earnings Highlights: Berkshire Hathaway, Costco, Safeway, Staples, Wendy's ...

Earnings Highlights: Berkshire Hathaway, Costco, Safeway, Staples, Wendy's ... originally appeared on BloggingStocks on Sat, 06 Mar 2010 12:10:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Adobe Systems Inc. (NASDAQ: ADBE) was upgraded following its Q1 release and guidance.
• America's Car-Mart Inc. (NASDAQ: CRMT) posted higher earnings in Q3 and same-store sales growth.
• AT&T Inc. (NYSE: T) was upgraded by an analysts who felt that consensus estimates are beatable.
• Berkshire Hathaway Inc. (NYSE BRK.A) suffered a big profit decline, its fifth straight quarterly decline.
• Blackstone Group (NYSE: BX) posted horrible Q4 results as the values of its portfolio shrank.

Continue reading Earnings highlights: Berkshire Hathaway, Blackstone, Costco, Toll Bros. and more

Earnings highlights: Berkshire Hathaway, Blackstone, Costco, Toll Bros. and more originally appeared on BloggingStocks on Sat, 07 Mar 2009 09:40:00 EST. Please see our terms for use of feeds.

Wendy's/Arby's Group (NYSE: WEN), a fast-food company that competes with McDonald's Corporation (NYSE: MCD), Burger King (NYSE: BKC), and Yum! Brands (NYSE: YUM), reported earnings for the fourth quarter on Monday. Call me unimpressed.

The chain earned $0.05 per share on an adjusted basis. According to this article, the results matched expectations. I don't begrudge Wendy's/Arby's for doing that in such a tough marketplace. But I do begrudge the weakness in the Arby's brand. Systemwide same-store sales at Wendy's were up 3.7% in Q4, while systemwide comps at Arby's were down a terrible 8.5%. Arby's is having problems attracting people with its current menu portfolio. The value menu at Wendy's, on the other hand, seems to be a strategy that is working. Customers are coming in, ready to get a deal on those delicious, although not-so-healthy, square-shaped burgers. So, if the company wants to improve its situation, it's going to have to get serious about fixing Arby's.

Continue reading Is Wendy's/Arby's Group's stock as healthy as its menu?

Is Wendy's/Arby's Group's stock as healthy as its menu? originally appeared on BloggingStocks on Mon, 02 Mar 2009 17:30:00 EST. Please see our terms for use of feeds.

While the release of economic data doesn't stop next week (see economic schedule highlights below), the earnings season does wind down dramatically. Most of the S&P 500 companies already have reported on the past quarter, which means dismal earnings news is largely behind us, at least for a while. About the only companies of note expected by analysts surveyed by Thomson Reuters to report falling earnings this week are Costco Wholesale Corp. (NASDAQ: COST), Wendy's/Arby's Group Inc. (NYSE: WEN), Foot Locker Inc. (NYSE: FL), Bank of Montreal (NYSE: BMO), and Steinway Musical Instruments Inc. (NYSE: LVB).

While PetSmart Inc. (NASDAQ: PETM) and Big Lots Inc. (NYSE: BIG) quarterly profits are expected to be about the same as a year ago, Liz Claiborne Inc. (NYSE: LIZ), Kenneth Cole Productions Inc. (NYSE: KCP), Ciena Corp. (NASDAQ: CIEN), and Trina Solar Ltd. (NYSE: TSL) are expected to have swung to losses in the most recent quarter.

Continue reading The week in preview: Earnings season winds down

The week in preview: Earnings season winds down originally appeared on BloggingStocks on Sun, 01 Mar 2009 12:30:00 EST. Please see our terms for use of feeds.

McDonald's (NYSE: MCD), whose competitors include Yum! Brands (NYSE: YUM), Burger King (NYSE: BKC), and Wendy's (NYSE: WEN), isn't known for being a part of a healthy diet, no matter how much branding it's done in that area. However, it is known for delivering good earnings. That's why investors probably aren't too worried when it comes to Wednesday, the day that the fast-food behemoth is set to hand off a sack of quarterly numbers at the earnings-report drive-thru.

According to AOL Finance, McDonald's beat the street by a wide margin in the first quarter. The call was for about 70 cents per share which Mickey Dee's beat by a whopping 11 cents. The previous quarters weren't as impressive, but they were solid enough. McDonald's seems to have the game of at least matching expectations down pat, so I am confident that come Wednesday, the company's bottom line will be close to the 86 cents per share that Wall Street is looking for in the second quarter, according to Earnings.com.

If McDonald's makes the number, then it will represent growth of over 20%. Double-digit appreciation is a valuable commodity in this time period. I can't say, though, that McDonald's won't have its challenges cut out for it. After all, inflation is affecting everyone, and fuel prices theoretically could hamper the popularity of the company's valuable drive-thru asset (I used one last evening myself). But McDonald's has that famous dollar menu going for it, so even in tough times, fans of fatty foodstuffs can still afford the oily, heart-clogging grub.

Continue reading Earnings preview: Will McDonald's serve up healthy earnings?

Earnings preview: Will McDonald's serve up healthy earnings? originally appeared on BloggingStocks on Fri, 18 Jul 2008 13:00:00 EST. Please see our terms for use of feeds.

Yum! Brands (NYSE: YUM), which competes with Burger King (NYSE: BKC), McDonald's (NYSE: MCD) and Wendy's (NYSE: WEN), issued its Q2 report on Wednesday. Total revenues increased 12%, and earnings per share jumped 16% to $0.45. According to Briefing.com, Yum! beat expectations by three pennies, but it didn't seem to satisfy the big guns of Wall Street. The stock was down 5% in the after-hours session yesterday.

Some reports indicate that margins are to blame here. It's true, the margins aren't as good as one would like, but the company has nevertheless succeeded in cutting some costs. I see Yum!'s quarter as a very decent one in the context of the current bear market. In fact, the company posted worldwide same-store sales growth of 4%. U.S. comps exhibited a growth rate of 2%. There is opportunity in the U.S. for Yum! in terms of marketing for its Pizza Hut, KFC and Taco Bell brands. Management needs to see if it can increase comps in this territory. International restaurants, including locations in China, continue to do well.

I like Yum! and its long-term prospects, especially for restaurants located abroad. I also like that the dividend saw a great double-digit increase during the quarter, rising by a whopping 27%. Management is therefore signaling shareholders a high level of confidence behind the brands. I'm reticent about putting new money to work in any stock right now, but I think Yum! Brands is worth a place on the watch list and a round of due diligence on a pullback.

Disclosure: I don't own any company mentioned; positions can change at any time.

Yum! Brands beats earnings estimates, but will Wall Street care? originally appeared on BloggingStocks on Thu, 17 Jul 2008 08:44:00 EST. Please see our terms for use of feeds.

McDonald's (NYSE: MCD) has always been known for its famous French fries. Interestingly enough, though, it seems to me that the fast-food chain is becoming known these days for its coffee. I never thought McDonald's would invest as much as it has in coffee, but it looks like it's doing the right thing. According to this Bizjournals piece, McDonald's is putting its weight behind a coffee-bar initiative called McCafe. The program is being tested in various locations now and will be available nationally sometime next year.

I love the timing on this. After all, Starbucks (NASDAQ: SBUX) isn't doing so well. Not only is its stock hovering around 52-week-low territory, but the java king recently announced some store closings. That's almost unimaginable. Remember the days when every street corner needed a Starbucks? Yeah, those days are long gone. And I think McDonald's is smart in attempting to expand the brand equity of its coffee-brand portfolio. People need more of a reason to go to the palace of the hamburger-serving clown than just Big Macs these days, since the Big Mac and its various fat-saturated colleagues aren't as popular in these health-conscious times. I'm not saying drinking coffee is an exercise in life preservation, I'm just saying that it's good for McDonald's to focus on less controversial fare.

This significant foray into coffee is arguably a key reason for the company's stellar stock performance over the last few years and its competitive edge against rivals Burger King (NYSE: BKC) and Wendy's (NYSE: WEN). According to the AOL Finance snapshot, McDonald's is very much in the green for every timeframe save for year-to-date, which sees the stock down less than 1%. That's strength. McDonald's is a little below its 52-week high, and it might make for an interesting investment idea. At the very least, you can look forward to its McCafe program.

Disclosure: I don't own any company mentioned; positions can change at any time.

McDonald's continues its coffee crusade originally appeared on BloggingStocks on Wed, 09 Jul 2008 09:56:00 EST. Please see our terms for use of feeds.

I always love news items like this. According to Reuters, there exists a $175 hamburger. You can find it in New York at a place called The Wall Street Burger Shoppe. Presumably, big traders would be the only ones able to afford it.

Well, for those who would even think to complain about the prices at McDonald's (NYSE: MCD), Burger King (NYSE: BKC) and Wendy's (NYSE: WEN), this $175 burger should put things in perspective. It doesn't sell a lot; the news piece states that the place moves about two dozen in any given thirty-day period. The Wall Street Burger Shoppe mostly sells $4 burgers.

But, really, this $175 burger is nothing more than genius marketing. The owners are obviously not under any illusion whatsoever that they can make a great return on capital by investing in such a pricey offering. All it's meant to do is to bring publicity to the establishment. It's obviously worked. As a way of branding, this goofy pricing scheme immediately differentiates the restaurant's brand from others. In fact, it was the stated intent of the owners to have the most expensive burger in the area. It's also a great differentiator between personalities. I mean, I think you can tell a lot about a person who is actually willing to buy this thing (and, you can certainly infer a lot about the person's net worth).

Continue reading Honestly, who would pay this much for a burger?

Honestly, who would pay this much for a burger? originally appeared on BloggingStocks on Wed, 21 May 2008 15:18:00 EST. Please see our terms for use of feeds.

Wendy's new Frosty flavors - how about one made with just milk? originally appeared on BloggingStocks on Wed, 21 May 2008 14:50:00 EST. Please see our terms for use of feeds.

Triarc plans job cuts at Wendy's originally appeared on BloggingStocks on Tue, 13 May 2008 12:37:00 EST. Please see our terms for use of feeds.

McDonald's (NYSE: MCD) announced its same-store sales results for the month of April Thursday, and the data indicate a healthy fast-food business ("healthy fast food" -- isn't that an oxymoron?).

Global comps as a whole increased 5%. Comps for European locations increased 6.3%, and the Asia/Pacific/Middle East/Africa segment saw a 7.8% rise in same-store sales. McDonald's restaurants in the States increased an anemic 2%. The weak domestic sales really need to be addressed so that they can pull more weight and add to the cool story that is McDonald's.

The stock has been a pretty decent performer over the last several months, rising over 6% over the three-month timeframe, and over the one-month period, it is up over 7%. And the longer-period returns from the past are even more impressive. Imagine how McDonald's stock would perform if management figured out how to get people to visit the U.S.'s Golden Arches more often. I suppose April's performance should be praised since March saw a decline in U.S. comps, as this article makes plain, but that depreciation was the first one in five years, and that says to me that McDonald's needs to be careful.

It's all about the marketing, of course. There are a lot of choices out there -- Burger King (NYSE: BKC), Wendy's (NYSE: WEN) and Yum! Brands (NYSE: YUM) -- so I think promotion of the brand is key. Some will disagree and say that menus and pricing are the big drivers -- they are important, don't get me wrong, but perhaps McDonald's needs to take a cue from Burger King and its campaign with the creepy-king thing -- those commercials are clever. Still, if this comps reports says anything, it says that you shouldn't count the clown out -- McDonald's is a blue-chip stock that is near a 52-week high, and not only is it a great long-term/core holding, but it's also quite possibly an interesting shorter-term idea as well.

Disclosure: I don't own shares in any company mentioned here; positions can change at any time.

McDonald's same-store sales show that the clown still has clout originally appeared on BloggingStocks on Fri, 09 May 2008 10:42:00 EST. Please see our terms for use of feeds.

McDonald's (NYSE: MCD) may be the big brand name in the fast-food industry, but don't discount Burger King (NYSE: BKC). The King reported its fiscal Q3 numbers on Thursday, and they were pretty regal indeed.

Revenues increased 10%, and earnings per share did even better, rising 20% to 30 cents (that beat earnings by three pennies, says Briefing.com). Now, when talking about retail stores and fast-food joints, the issue of same-store sales always comes up, since it's such an important element to consider (be sure to keep in mind that comps must always be put in an overall context, especially if you are only measuring a one-month timeframe). Global comps increased 5.8% for the quarter, a good showing for Burger King which wants to become a force to be reckoned with around the world. The domestic side of things isn't doing too badly either as comps in the United States and Canada moved up 5.4%. Restaurant margins, however, decreased due to the challenging commodity-cost environment we all live in nowadays. Otherwise, I see these earnings as very positive for Burger King, and I am bullish on the stock.

Continue reading Burger King's earnings up thanks to that creepy mascot?

Burger King's earnings up thanks to that creepy mascot? originally appeared on BloggingStocks on Fri, 02 May 2008 08:45:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Cowen upgraded Northrop Grumman (NYSE: NOC) to Outperform from Neutral following the Q1 report based on accelerating growth. Shares were also upgraded at JP Morgan to Overweight from Neutral.
  
• Friedman Billings upgraded Phase Forward (NASDAQ: PFWD) to Outperform from Market Perform following the solid Q1 report and views guidance as beatable.
  
• CIBC raised Celestica (NYSE: CLS) to Sector Outperformer from Sector Performer following Q1 results, citing end markets that look stable.

• JP Morgan upgraded the Consumer Discretionary Sector to Overweight from Underweight.
  
• Wendy's (NYSE: WEN) was raised to Neutral from Sell at Goldman.
  
• Progenics Pharmaceuticals (NASDAQ: PGNX) was upgraded at Citigroup to Hold from Sell.
  
• Merrill Lynch raised Wal-Mart (NYSE: WMT) to Buy from Neutral.

Analyst upgrades: NOC, PFWD and CLS originally appeared on BloggingStocks on Fri, 25 Apr 2008 11:11:00 EST. Please see our terms for use of feeds.

Wendy's (NYSE: WEN) finally sold the company to Nelson Peltz. The price which Peltz company Triarc paid was about $26.78 per share only a 6% premium according to the AP. One of the reasons the firm went for so little may be that there were no other buyers. The Wall Street Journal writes that "The move puts an end to the year-long saga that began when Wendy's first said it would consider a sale last April after Mr. Peltz began pressuring the chain."

Peltz has gotten a very good deal and Wendy's shareholders have not. The chain's current stock price is near its 52-week low. Over the last six months, the company's shares are down about 23% while rivals Burger King (NYSE: BKC) and McDonald's (NYSE: MCD) are up about 5%. Of course, they are the market share leaders and deserve some premium for that.

But if fast food does well, especially in a poor economy when people cannot afford more expensive restaurants, Peltz will have picked up a prize. When a recovery comes around, Wendy's could become a very nice business and the billionaire will look like a genius.

Douglas A. McIntyre is an editor at 247wallst.com.

Nelson Peltz finally gets Wendy's (WEN) originally appeared on BloggingStocks on Thu, 24 Apr 2008 10:10:00 EST. Please see our terms for use of feeds.