Goldman Sachs Upgrades Wendy's (WEN) to Neutral

Goldman Sachs upgraded Wendy's (NASDAQ: WEN) from Sell to Neutral with a price target of $7.50 (from $5.00). Analyst Michael Kelter thinks movement toward an asset-light franchising model and higher margins improve the story.

"We upgrade WEN to Neutral from Sell based on the latest developments at the company. (1) It is moving further towards an asset-light franchised model, which generally commands a higher market multiple. (2) Profitability is better than anticipated and WEN laid out a credible path for further margin expansion to come. (3) There is an increasing possibility that WEN could generate sustained positive SSS from remodels and new products," said Kelter.

For an analyst ratings summary and ratings history on Wendy's (NASDAQ: WEN) click here. For more ratings news on Wendy's click here.

Shares of Wendy's closed at $7.23 yesterday.

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