During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.
From fast food to fine dining, restaurants play a vital societal role. But it’s not all sunshine and rainbows as they’re notoriously hard to run thanks to perishable ingredients, labor shortages, or volatile consumer spending.
Unfortunately, these factors have spelled trouble for the industry as it has shed 8.6% over the past six months. This performance is a far cry from the S&P 500’s 15.6% ascent.
US restaurant spending up 3.7% in August, driven by return to both chain and independent establishments. Income levels and regional markets boost growth.
Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor.
The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Wendy's (NASDAQ:WEN) and the rest of the traditional fast food stocks fared in Q2.
Fast food is out, fast casual is in. Changing consumer trends have punished fast food chains lately, but these 3 companies are innovating to lure back diners.
Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges.
However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
Restaurants are starting to see a drop in traffic and pressure from higher commodity prices and labor costs. So, it's no surprise restaurant stocks are down big this year, but the size of the drop in names like Cava and Chipotle are shocking.
Hitting a new 52-week low can be a pivotal moment for any stock.
These floors often mark either the beginning of a turnaround story or confirmation that a company faces serious headwinds.
Fast-food chain Wendy’s (NASDAQ:WEN) beat Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 1.7% year on year to $560.9 million. Its non-GAAP profit of $0.29 per share was 14% above analysts’ consensus estimates.
Cook stated that the numerous initiatives taken during one hundred days of summer programming made it challenging for the company’s restaurant teams to execute effectively, as they sent too many different messages to its customers.
Wendy's beat Q2 EPS estimates and expanded its global footprint but trimmed full-year guidance and admitted the U.S. business "has work to do to improve."
Fast-food chain Wendy’s (NASDAQ:WEN) announced better-than-expected revenue in Q2 CY2025, but sales fell by 1.7% year on year to $560.9 million. Its non-GAAP profit of $0.29 per share was 14% above analysts’ consensus estimates.
