S&P raises Wendy’s

S&P said it raised the Wendy’s Co.’s issuer rating to B+ from B and the unsecured debentures rating to B- from CCC+. The 6 recovery rating indicates an expectation for negligible recovery (0%-10%; rounded estimate: 0%) in default.

S&P noted Wendy’s first-quarter performance exceeded its expectations with sales growing more than 12% and expected continued growth and profit expansion in 2021.

“The upgrade reflects our view of improved creditworthiness based on resilient operating performance and favorable operating prospects that offsets the higher leverage level compared to other non-franchisor retail and restaurant peers,” the agency said in a press release.

The outlook is stable.

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