The restaurant sector is in a bear market. Nearly all firms, except McDonald’s (MCD), are struggling on the stock market.
On November 7, Wendy’s (WEN) said that it would close hundreds of underperforming restaurants. The firm will likely pick less desirable locations. Homelessness, crime, weakening neighborhood economics, and competition are some of the factors `contributing to the closures.
In the third quarter, Wendy’s revenue of $549.5 million fell by 3% Y/Y. It earned $0.24 a share. The firm is forecasting global sales growth to fall by 3% to 5%.
Wait for WEN stock to form a bottom pattern before starting a position.
Ubiquiti (UI) fell by 19.4% last Friday. Though it is expensive on a forward P/E of 51.96 times, the stock historically bounces back. In Q1, non-GAAP EPS was $3.46. Revenue increased by 33.3% year-over-year to $733.8 million. UI stock plunged because the firm did not issue guidance.
LyondellBasell (LYB) traded at a 52-week low last week. At $43.02, the dividend yield was 12.74%. In Q3, it lost $2.77 a share, or a net loss of $890 million. It took a $1.2 billion non-cash asset impairment and restructuring charge. The firm will cut costs by $1.1 billion in 2026. It already tightened cost controls, while demand trends strengthened.
