Wendy's Earnings: Little to Change Our View as Earnings Arrive Near Our Expectations

No-moat Wendy's reported OK third-quarter earnings, but its decision to close roughly 140 underperforming stores in the US and light comparable sales growth (just 0.2% in the US) drove a sour market reaction after the release. We expect pretty limited change to our $19 fair value estimate as we balance a slew of largely offsetting factors—slight quarterly outperformance, time value, expected unit closures, and an intact long-term view, leaving shares trading in a range we'd consider fairly priced.