Wendy’s Co. was upgraded to outperform from sector perform at RBC Capital Markets, which cut its price target from $12 to $11. The bank adjusted the price target because of sales risk posed by a resurgent McDonald’s Corp in 2016, it said in a note. But RBC believes that same-store sales for Wendy’s have grown “nicely” in recent weeks, aided by a well-timed “4 for $4” promotion. The bank also believes that Wendy’s increased franchising (up to 95% by the second quarter of 2016) will have a long-term positive effect on earnings. Wendy’s shares are up 3.9% for the year so far. The S&P is up 1.6% for the same period.
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