Evercore ISI Sees Potential Upside for Wendy’s Ahead of Investor Day

Evercore ISI analysts reaffirmed an In Line rating on Wendy’s (NASDAQ:WEN) with an $18.00 price target, citing potential upside leading into the company’s March 6 Investor Day.

The analysts highlighted four key reasons why Wendy’s stock could see gains. First, they noted that Wendy’s valuation remains relatively low, having declined 12% over the past month and 25% over the last year. The stock currently trades at 15x estimated 2025 earnings per share (EPS) and 12x enterprise value to EBITDA (EV/EBITDA)—a 30% discount to global franchised peers but more in line with domestic competitors such as Papa John’s and Jack in the Box. The analysts suggested that this valuation gap could narrow by 1-2 turns following Investor Day, potentially boosting the stock by 10-15%.

Second, Evercore pointed to renewed optimism around a potential turnaround. While the fast-food sector has faced headwinds, with industry-wide same-store sales down roughly 2.5-3% year-to-date and the QSR sandwich category declining 4-4.5%, they believe these trends may have bottomed out, with comparisons easing later in the year. Additionally, while Wendy’s has lost market share and faces competitive pressure from McDonald’s, a more favorable macro environment could help stabilize performance.

The analysts also noted that small and mid-cap restaurant stocks remain near historical lows, positioning Wendy’s as a potential M&A candidate in an increasingly business-friendly climate. While challenges persist, investors may find compelling value in Wendy’s stock ahead of its strategic update in March.