Analysts predict an EPS of $0.20 and revenue of approximately $526.6 million for the upcoming earnings release.
Notable activity in the options market indicates traders are preparing for potential volatility post-earnings announcement.
Wendy’s financial metrics such as a P/E ratio of 13.11 and a debt-to-equity ratio of 15.78 highlight its market valuation and financial health.
Wendy’s Co (NASDAQ:WEN) is a well-known fast-food chain, recognized for its square hamburgers and Frosty desserts. As it prepares to release its quarterly earnings on May 2, 2025, analysts predict an earnings per share (EPS) of $0.20 and revenue of approximately $526.6 million. This report is crucial as it could significantly impact the stock’s movement.
Ahead of the earnings announcement, there is notable activity in the options market. Traders have exchanged 10,000 put options and 5,491 call options, which is six times the average intraday volume. The most popular contracts are the August 15 put and the 18 call, indicating a shift in sentiment towards bearish bets. This suggests that traders are preparing for potential volatility following the earnings release.
Wendy’s financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of 13.11, reflecting how the market values its earnings. Its price-to-sales ratio is 1.09, indicating the amount investors are willing to pay per dollar of sales. Additionally, the enterprise value to sales ratio is 2.71, showing the company’s total valuation compared to its sales.
The company’s financial health is further highlighted by its enterprise value to operating cash flow ratio of 17.15, which shows the relationship between its valuation and cash flow from operations. Wendy’s earnings yield is 7.63%, offering insight into the return on investment for shareholders. However, the debt-to-equity ratio is high at 15.78, indicating significant leverage. The current ratio of 1.85 suggests Wendy’s can cover its short-term liabilities with its short-term assets.
Analysts from Zacks Investment Research expect a decline in earnings for the quarter ending March 2025, attributed to lower revenues. If Wendy’s earnings report fails to meet expectations, it could lead to a decline in stock price. Conversely, if results exceed expectations, the stock might see an upward trend. The management’s discussion during the earnings call will be crucial in determining the sustainability of any immediate price changes and future earnings expectations.
