Wendy's stock price fell 4.9 percent to $8 on Monday-analysts have suggested its "lack of success" with its newest pork menu items may be to blame.
"Our reduced price target and estimates reflect both Wendy's lack of success with its recent pork platform and successful value messaging by competitors," RBC analyst David Palmer wrote, The Street reports.
The Street Ratings Team, however, observed a positive growth on Wendy's end and labeled its stock as a Buy.
"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 website writes.
"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."
Wendy's most recent menu item addition, its Pulled Pork Cheese Fries, has drawn criticism from many because of its experimentation with ingredients. The company has also released a BBQ pulled pork cheeseburger and a pulled pork sandwich.
Many online reviews have written negatively about the new pork-based menu items.
