NEW YORK (TheStreet) -- Shares of The Wendy's Co.a were falling 4.9% to $8 Monday after RBC Capital lowered its price target and EPS estimates for the fast food company. The analyst firm lowered its price target for Wendy's to $9 from $10, reiterating its "sector perform" rating for the company. RBC lowered its EPS estimates for the company through 2015. RBC lowered its fourth-quarter 2014 EPS estimates for Wendy's to 9 cents a share from previous estimates of 10 cents a share. The firm lowered its EPS estimates for full year 2014 to 33 cents from 34 cents a share, and lowered its 2015 EPS estimates to 38 cents from 40 cents a share. Must Read:aWarren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. "Our reduced price target and estimates reflect both Wendy's lack of success with its recent pork platform and successful value messaging by competitors," analyst David Palmer wrote. ------------ Separately, TheStreet Ratings team rates WENDY'S CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate WENDY'S CO (WEN) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: WENDY'S CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WENDY'S CO increased its bottom line by earning $0.12 versus $0.02 in the prior year. This year, the market expects an improvement in earnings ($0.35 versus $0.12). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 137.3% when compared to the same quarter one year prior, rising from $12.22 million to $29.01 million. The debt-to-equity ratio is somewhat low, currently at 0.83, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.38, which illustrates the ability to avoid short-term cash problems. WEN, with its decline in revenue, slightly underperformed the industry average of 10.2%. Since the same quarter one year prior, revenues fell by 19.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share. You can view the full analysis from the report here: WEN Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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