Why Wall Street Expects Wendy’s Earnings per Share to Rise

For 4Q17, analysts expect Wendy’s (WEN) to post EPS (earnings per share) of $0.11, which represents growth of 37.5% from its $0.08 in 4Q16. Wendy’s management has set a 2017 EPS guidance range of $0.43–$0.45, which represents growth in the range of 7.5%–12.5% from $0.40 in 2016. Wendy’s EPS growth is expected to be driven by revenue growth, the expansion of EBIT (earnings before interest and tax) margins, a lower effective tax rate, and share repurchases in the last four quarters.