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UPDATE: Stephens & Co. Assumes Wendy's at Overweight, Announces $29 Price Target As Firm Notes 3 Reasons:

1. We believe that breakfast will be a successful daypart for the company, driven by a motived franchisee base, a quality food/drink lineup, and a low breakeven point for individual stores 2. While breakfast is a

Benzinga · 03/10/2020 15:42

1. We believe that breakfast will be a successful daypart for the company, driven by a motived franchisee base, a quality food/drink lineup, and a low breakeven point for individual stores

2. While breakfast is a near-term headwind for Wendy’s profitability due to needed investments in national advertising, our forecasts indicate the daypart will be highly profitable by 2022 and 2023

3. We believe that with accelerating comps and systemwide sales growth in 2020, and growing conviction that breakfast will be a profitable endeavor, WEN’s multiple should expand from today’s 15x EV/EBITDA level