Argus Lowers Wendy’s (WEN) Rating, Cites Competition and Leadership Changes

The Wendy’s Company (NASDAQ:WEN) ranks among the top NASDAQ stocks with low P/E ratios. Argus lowered The Wendy’s Company (NASDAQ:WEN)’s from Buy to Hold on September 23 owing to weak U.S. sales and traffic that are affecting the company’s performance despite overseas gains.

The fast-food giant reported second-quarter revenue 2% lower than the previous year, with global sales falling 1.8%. U.S. sales dipped 3%, while same-store sales fell 3.6%, partially offset by a 9% increase in overseas sales.

According to Argus, although Wendy’s valuation appears low, the company is dealing with growing expenses, a change in leadership, and fierce competition. If U.S. sales show a rebound and international sales pick up, the firm stated that it would consider adding the company back to its buy list.

The Wendy’s Company (NASDAQ:WEN) is a chain of quick-service restaurants that operates in the United States as well as overseas. The company operates through three primary segments: Global Real Estate & Development, Wendy’s International, and Wendy’s U.S.

While we acknowledge the potential of CRSP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRSP and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.