Stifel analysts analyzed a random sampling of Wendy's Co. (WEN) menus and found that 5% to 10% presented a chicken-only menu. "While we believe this is a transient issue, we expect impacts to the system's beef supply will be a flash point during the earnings call and further interruptions could lead to share price volatility in the near-term," analysts led by Chris O'Cull wrote in a report. There have been concerns about meat shortages nationwide, with reports (Costco Wholesale Corp. (COST) is limiting the amount of meat customers can purchase and Kroger Co. (KR) putting limits on the amount of pork and ground beef shoppers can buy at select stores. Meat plants, including some run by Tyson Foods Inc. (TSN), have had to shut temporarily ( ) due to COVID-19. President Trump issued an executive order ( ) for plants to remain open. "Unlike other major burger chains, Wendy's uses "fresh, never frozen" beef, which we believe gives it outsized exposure to recent disruptions," Stifel said, noting that it could be an issue when Wendy's reports first-quarter earnings, which is scheduled for tomorrow before the opening bell. Still, analysts are bullish, rating Wendy's stock buy with a $22 price target. "We continue to believe the company is well-positioned to grow the breakfast day-part as states begin to ease restrictions, providing a structural same-restaurant sales tailwind and expect the current environment has only accelerated the growth of its digital platform," the report said. MarketWatch has reached out to Wendy's for comment. Wendy's stock slumped 2.8% on Tuesday, but has climbed 1.6% over the last year. The S&P 500 index is down 2% for the past 12 months.) that
-Tonya Garcia; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 05, 2020 11:28 ET (15:28 GMT)
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