Wendy’s Co. was downgraded to market perform from outperform at BMO Capital Markets, with analysts expressing concern that the burger chain’s breakfast business won’t reach the levels the company has guided for. BMO cut its price target to $22 from $28. Wendy’s launched its latest breakfast menu in 2020, and said during its fourth-quarter earnings that the U.S. breakfast business will accelerate by about 10% to 20% in 2022. “We have been bullish on Wendy’s breakfast opportunities and successes to this point,” wrote BMO in its note. “However, we expect consumers to prioritize spending behind favorite over trial in an environment with potentially more limited discretionary income.” Analyst say McDonald’s Co. “tends to be more resilient in a softer economy.” And Papa John’s International Inc. and Wingstop Inc. “should benefit from being inexpensive ways to feed a family/group.” Wendy’s stock was down 2.4% in Monday trading, and shares have fallen 14.5% for the year to date. Read: Analysts say this is the least expensive restaurant option to feed a family of four
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