Wendy's (NASDAQ:WEN) Given New $6.75 Price Target at Citigroup

Key Points

• Citigroup lowered Wendy’s price target from $8.25 to $6.75 while maintaining a “neutral” rating, implying roughly 9% upside from the prior close.
• Wendy’s shares fell 5.7% to $6.20, near the company’s 12-month low of $5.94. The broader analyst view remains cautious, with a consensus “Reduce” rating and $7.52 target price.
• The company recently exceeded quarterly earnings and revenue expectations, reporting $0.18 in EPS on $570.6 million in revenue, while institutional investors own approximately 86% of its stock.

Wendy's (NASDAQ:WEN - Get Free Report) had its target price lowered by equities researchers at Citigroup from $8.25 to $6.75 in a report released on Friday, Benzinga reports. The brokerage currently has a "neutral" rating on the restaurant operator's stock. Citigroup's price target indicates a potential upside of 8.96% from the stock's previous close.

A number of other brokerages have also recently commented on WEN. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Wendy's in a research note on Thursday, October 15th. KeyCorp reissued a "sector weight" rating on shares of Wendy's in a research note on Tuesday, August 11th. Stephens decreased their price objective on shares of Wendy's from $8.00 to $7.00 and set an "equal weight" rating for the company in a report on Thursday, October 15th. Guggenheim reaffirmed a "neutral" rating on shares of Wendy's in a research note on Tuesday, September 15th. Finally, BMO Capital Markets reiterated a "market perform" rating on shares of Wendy's in a report on Monday, August 10th. Two analysts have rated the stock with a Buy rating, twelve have given a Hold rating and five have issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus target price of $7.52.

Wendy's Trading Down 5.7%

Shares of NASDAQ:WEN traded down $0.38 during midday trading on Friday, hitting $6.20. The company had a trading volume of 3,444,935 shares, compared to its average volume of 10,964,068. The company has a current ratio of 1.90, a quick ratio of 1.88 and a debt-to-equity ratio of 27.95. Wendy's has a 12 month low of $5.94 and a 12 month high of $10.12. The firm has a fifty day simple moving average of $7.29 and a 200 day simple moving average of $7.34. The stock has a market cap of $1.18 billion, a price-to-earnings ratio of 9.39, a PEG ratio of 0.64 and a beta of 0.40.

Wendy's (NASDAQ:WEN - Get Free Report) last released its quarterly earnings data on Friday, August 7th. The restaurant operator reported $0.18 EPS for the quarter, beating analysts' consensus estimates of $0.16 by $0.02. Wendy's had a return on equity of 115.31% and a net margin of 5.72%. The business had revenue of $570.57 million during the quarter, compared to the consensus estimate of $557.13 million. During the same quarter in the prior year, the company posted $0.29 earnings per share. The firm's revenue was up 1.8% on a year-over-year basis. On average, analysts predict that Wendy's will post 0.49 EPS for the current year.

Institutional Investors Weigh In On Wendy's

A number of hedge funds have recently modified their holdings of the business. Global Retirement Partners LLC acquired a new position in shares of Wendy's in the 2nd quarter valued at approximately $27,000. Cassaday & Co Wealth Management LLC acquired a new stake in Wendy's during the 1st quarter worth approximately $30,000. Nykredit A S acquired a new stake in Wendy's during the 2nd quarter worth approximately $37,000. SJS Investment Consulting Inc. acquired a new stake in Wendy's during the 1st quarter worth approximately $32,000. Finally, Sterling Capital Management LLC lifted its stake in Wendy's by 630.5% in the third quarter. Sterling Capital Management LLC now owns 5,245 shares of the restaurant operator's stock valued at $33,000 after buying an additional 4,527 shares in the last quarter. Institutional investors and hedge funds own 85.96% of the company's stock.

Wendy's Company Profile

The Wendy's Company NASDAQ: WEN operates and franchises quick-service restaurants under the Wendy's brand. Its restaurants are known for hamburgers made with fresh, never-frozen beef, along with chicken sandwiches, salads, fries, breakfast items, desserts, and beverages.

Founded by Dave Thomas in 1969, Wendy's has grown into an international restaurant chain with locations primarily in the United States and Canada, as well as select markets in other countries. The company's restaurant system includes both company-operated and franchised locations.

In addition to its restaurant operations, Wendy's supports customers through digital ordering, delivery, loyalty programs, and mobile applications.

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