Citigroup Cuts Wendy's (NASDAQ:WEN) Price Target to $7.25

Key Points

• Citigroup cut its price target on Wendy's from $8.00 to $7.25 and maintained a "neutral" rating, implying only about a 2.17% upside from the prior close.
• Analyst sentiment has trended down: MarketBeat shows a consensus rating of "Reduce" with an average target of $8.81 after multiple firms (Stephens, Mizuho, JPMorgan) recently lowered targets; current coverage includes 4 Buys, 16 Holds and 5 Sells.
• Wendy's reported Q results with EPS of $0.16 beating the $0.14 estimate but revenue of $439.6M missed expectations and fell 5.5% year‑over‑year; the company set FY2026 guidance of $0.560–0.600 EPS and shares trade around $7.10 (market cap ~$1.35B, P/E ~8.35).

Wendy's (NASDAQ:WEN - Get Free Report) had its price target lowered by equities researchers at Citigroup from $8.00 to $7.25 in a report released on Friday,Benzinga reports. The brokerage presently has a "neutral" rating on the restaurant operator's stock. Citigroup's price objective suggests a potential upside of 2.17% from the stock's previous close.

A number of other research firms also recently issued reports on WEN. Stephens dropped their price objective on shares of Wendy's from $9.00 to $8.00 and set an "equal weight" rating on the stock in a research note on Friday, February 13th. Stifel Nicolaus set a $8.00 target price on shares of Wendy's in a research note on Monday, February 16th. Mizuho cut their target price on shares of Wendy's from $8.00 to $7.00 and set an "underperform" rating for the company in a research note on Friday, January 9th. Argus raised shares of Wendy's to a "hold" rating in a research note on Wednesday, January 21st. Finally, JPMorgan Chase & Co. dropped their price target on shares of Wendy's from $9.00 to $7.00 and set a "neutral" rating for the company in a research note on Monday, February 23rd. Four analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and five have assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Reduce" and an average target price of $8.81.

Wendy's Stock Performance

Shares of NASDAQ:WEN traded up $0.17 during midday trading on Friday, hitting $7.10. The company had a trading volume of 4,401,625 shares, compared to its average volume of 8,349,825. The company has a market cap of $1.35 billion, a price-to-earnings ratio of 8.35, a PEG ratio of 2.00 and a beta of 0.40. The company has a debt-to-equity ratio of 28.77, a current ratio of 1.76 and a quick ratio of 1.74. The company has a fifty day moving average of $7.19 and a two-hundred day moving average of $8.00. Wendy's has a 12-month low of $6.63 and a 12-month high of $13.06.

Wendy's (NASDAQ:WEN - Get Free Report) last issued its earnings results on Friday, February 13th. The restaurant operator reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.02. Wendy's had a net margin of 7.58% and a return on equity of 145.93%. The company had revenue of $439.60 million during the quarter, compared to the consensus estimate of $537.11 million. During the same quarter in the prior year, the firm posted $0.25 EPS. Wendy's's quarterly revenue was down 5.5% compared to the same quarter last year. Wendy's has set its FY 2026 guidance at 0.560-0.600 EPS. On average, equities research analysts expect that Wendy's will post 0.58 EPS for the current fiscal year.

Hedge Funds Weigh In On Wendy's

Several hedge funds have recently added to or reduced their stakes in WEN. Versant Capital Management Inc grew its holdings in Wendy's by 19,693.8% in the third quarter. Versant Capital Management Inc now owns 3,167 shares of the restaurant operator's stock valued at $29,000 after purchasing an additional 3,151 shares during the period. MassMutual Private Wealth & Trust FSB lifted its position in shares of Wendy's by 205.0% during the third quarter. MassMutual Private Wealth & Trust FSB now owns 3,257 shares of the restaurant operator's stock worth $30,000 after purchasing an additional 2,189 shares in the last quarter. Hilton Head Capital Partners LLC acquired a new position in shares of Wendy's during the fourth quarter worth $30,000. Fifth Third Bancorp raised its holdings in Wendy's by 161.0% in the fourth quarter. Fifth Third Bancorp now owns 3,829 shares of the restaurant operator's stock valued at $32,000 after acquiring an additional 2,362 shares in the last quarter. Finally, Gen Wealth Partners Inc acquired a new stake in Wendy's in the fourth quarter valued at $33,000. 85.96% of the stock is currently owned by hedge funds and other institutional investors.

Key Wendy's News

Here are the key news stories impacting Wendy's this week:

• Positive Sentiment: Wendy’s officially announced a Spring menu with seven new items — including the Cookie Dough Frosty Fusion as a new core offering and several spicy/sweet items — hitting U.S. restaurants starting April 27; the company gave app users early access beginning April 23, which could boost digital sales and traffic. Wendy's Delivers on Fan Cravings with a Lineup of Innovative Spring Menu Items
• Positive Sentiment: Wendy’s reached 100 stores in the Philippines — a sign of international franchise momentum that supports long‑term growth and franchise revenue diversification outside the U.S. Wendy's Hits 100 Philippine Stores As Shares Trade Below Fair Value
• Neutral Sentiment: Media coverage and reviews of the new Frosty flavor are mixed-to-positive: reviewers call the Cookie Dough Frosty Fusion a tasty addition but not a must‑have FOMO item, which may drive incremental but not breakout traffic. Wendy's New Cookie Dough Frosty Fusion Is Good, But Not FOMO
• Neutral Sentiment: Wide pickup by consumer and trade outlets (QSR, MSN, AOL, Primetimer, etc.) is amplifying awareness of the eight/seven‑item menu refresh — helpful for marketing and same‑store sales tracking but unclear how durable the sales lift will be. Wendy’s Announces New Spring Menu Lineup
• Negative Sentiment: Data shows high volume in WEN put options recently, indicating traders are taking bearish positions or hedging — a short‑term risk to the share price if sentiment or volatility increases. Investors should monitor options flow and open interest for signs of sustained downside pressure. Traders Purchase High Volume of Wendy's Put Options NASDAQ: WEN

Wendy's Company Profile

The Wendy's Company NASDAQ: WEN operates as a global quick-service restaurant chain, best known for its square-shaped beef patties, fresh ingredient sourcing and signature Frosty dessert. The company's menu features a variety of hamburgers, chicken sandwiches, salads, breakfast sandwiches, sides and beverages, designed to appeal to a broad customer base seeking both classic and contemporary fast-food options. Wendy's has placed particular emphasis on product innovation, introducing limited-time offerings and revamped core menu items to maintain customer interest and respond to evolving dining trends.

Founded in 1969 by entrepreneur Dave Thomas in Columbus, Ohio, Wendy's expanded rapidly through both company-owned and franchised outlets.

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