02:44 PM EST, 02/10/2025 (MT Newswires) -- Wendy's (WEN) aims to regain sales momentum following a slowdown after the recent success of its SpongeBob collaboration, UBS Securities said in a Monday note, adding that Q4 earnings and the company's investor day will be key events to asses its 2025 outlook.

The analysts said they are looking for "increased visibility into a sustained strengthening in sales trajectory and accelerating multiyear unit expansion as drivers for upside."

UBS said that despite strong Q4 performance from the Krabby Patty limited-time offer, the company's sales slowed in early Q1 2025 due to macroeconomic challenges and industry-wide headwinds. The fast food company is expected to counter this with a balanced value strategy, while leveraging core menu innovations, digital expansion, and extended dayparts, the analysts said.

Wendy's is focused on accelerating restaurant development, with a projected 3% to 4% unit growth in 2025 and inflation trends in beef, chicken, and eggs remain a watchpoint, according to the note.

UBS has a neutral rating on Wendy's stock with a price target of $17.

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