Street Calls of the Week
Investing.com - Wells Fargo downgraded Four Corners Property Trust (NYSE:FCPT) from Overweight to Equal Weight on Thursday, while maintaining a price target of $27.00. The stock, currently trading at $25.70 and offering a 5.53% dividend yield, has maintained a consistent dividend growth track record, raising payouts for three consecutive years according to InvestingPro data.
The downgrade comes as Wells Fargo expressed concerns about Four Corners’ ability to drive sufficient investment volumes that would support acceleration in 2026, compared to its Overweight-rated peers in the net lease sector. Despite these concerns, InvestingPro data shows the company maintains strong financial health with a current ratio of 1.72 and revenue growth of 6.29% in the last twelve months.
While the bank acknowledged that Four Corners maintains a strong credit profile and its casual dining properties have been performing well, it noted that broader weakness in restaurant industry sales and traffic could continue to pressure the stock.
The research firm also indicated that Four Corners screens less favorably on PEG/PEGY ratios compared to Wells Fargo’s Overweight-rated companies in the net lease sector.
Four Corners Property Trust is a real estate investment trust that primarily owns restaurant properties, many of which were originally spun off from Darden Restaurants.
In other recent news, Four Corners Property Trust (FCPT) reported its second-quarter earnings for 2025, showing a stable performance with earnings per share (EPS) aligning with forecasts at $0.28. However, the company’s revenue did not meet expectations, recording $64.8 million against the anticipated $73.26 million. In a separate development, FCPT announced the acquisition of four Burger King properties from Ampler Restaurant Group for $8.1 million. This acquisition was completed through a sale-leaseback arrangement and includes properties located in Ohio, Kentucky, and Virginia. The properties are operated by franchisees under triple-net leases, with an average of 19 years remaining on the lease terms. These recent developments highlight FCPT’s ongoing strategic activities in the real estate sector.
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