Fast-food chain Wendy’s (NASDAQ:WEN) will be reporting earnings tomorrow morning. Here’s what investors should know.

Wendy's missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $570.7 million, up 1.6% year on year. It was a mixed quarter for the company, with decent earnings guidance for the full year.

Is Wendy's a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Wendy’s revenue to grow 1.7% year on year to $560 million, slowing from the 3.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 10 downward revisions over the last 30 days (we track 21 analysts). Wendy's has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Wendy’s peers in the restaurants segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Domino's delivered year-on-year revenue growth of 5.1%, missing analysts’ expectations by 1.6%, and McDonald's reported revenues up 2.7%, in line with consensus estimates. Domino's traded up 4% following the results.

Read our full analysis of Domino’s results here and McDonald’s results here.

There has been positive sentiment among investors in the restaurants segment, with share prices up 4.2% on average over the last month. Wendy's is up 14.9% during the same time and is heading into earnings with an average analyst price target of $20.19 (compared to the current share price of $20.30).

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