Citigroup Has Lowered Expectations for Wendy's (NASDAQ:WEN) Stock Price

Key Points

• Citigroup lowered Wendy’s price target from $7.75 to $7.25 while maintaining a “neutral” rating, implying about 3.9% downside from the stock’s $7.54 price.
• Analyst sentiment remains cautious: Wendy’s has an average “Reduce” rating and an average price target of $8.04, with 13 Hold and six Sell ratings among covering analysts.
• Wendy’s recently beat quarterly EPS estimates ($0.12 versus $0.10) but reported revenue of $432.3 million, below the $518.0 million consensus estimate; institutional investors own approximately 86% of the shares.

Wendy's (NASDAQ:WEN - Get Free Report) had its target price lowered by equities researchers at Citigroup from $7.75 to $7.25 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm presently has a "neutral" rating on the restaurant operator's stock. Citigroup's price objective would indicate a potential downside of 3.91% from the company's current price.

A number of other equities research analysts also recently commented on WEN. Stephens reaffirmed an "equal weight" rating and issued a $8.00 price objective on shares of Wendy's in a research report on Tuesday, June 23rd. JPMorgan Chase & Co. reissued an "underweight" rating and issued a $6.00 price target (down from $7.00) on shares of Wendy's in a research note on Monday, May 11th. Argus raised shares of Wendy's from a "hold" rating to a "buy" rating and set a $12.00 price objective for the company in a research note on Wednesday, May 13th. Mizuho set a $6.00 price target on shares of Wendy's in a research note on Friday, May 1st. Finally, KeyCorp reiterated a "sector weight" rating on shares of Wendy's in a report on Wednesday, June 10th. Three research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and six have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Reduce" and an average target price of $8.04.

Wendy's Price Performance

Wendy's stock traded up $0.23 during midday trading on Tuesday, reaching $7.54. 2,439,664 shares of the company were exchanged, compared to its average volume of 12,545,849. The firm's 50-day simple moving average is $7.42 and its 200-day simple moving average is $7.46. Wendy's has a 1 year low of $6.07 and a 1 year high of $10.84. The company has a market capitalization of $1.44 billion, a price-to-earnings ratio of 9.66, a P/E/G ratio of 0.51 and a beta of 0.36. The company has a debt-to-equity ratio of 29.25, a quick ratio of 1.81 and a current ratio of 1.83.

Wendy's (NASDAQ:WEN - Get Free Report) last released its earnings results on Friday, May 8th. The restaurant operator reported $0.12 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.10 by $0.02. The company had revenue of $432.30 million for the quarter, compared to analyst estimates of $518.03 million. Wendy's had a net margin of 6.77% and a return on equity of 136.46%. The firm's quarterly revenue was up 3.3% on a year-over-year basis. During the same period in the prior year, the firm earned $0.20 EPS. Wendy's has set its FY 2026 guidance at 0.560-0.600 EPS. On average, analysts anticipate that Wendy's will post 0.58 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Hilton Head Capital Partners LLC acquired a new stake in shares of Wendy's in the fourth quarter worth $30,000. Cassaday & Co Wealth Management LLC purchased a new stake in Wendy's during the 1st quarter worth $30,000. Fifth Third Bancorp boosted its position in Wendy's by 161.0% during the 4th quarter. Fifth Third Bancorp now owns 3,829 shares of the restaurant operator's stock worth $32,000 after purchasing an additional 2,362 shares during the period. SJS Investment Consulting Inc. acquired a new stake in Wendy's in the 1st quarter valued at $32,000. Finally, Gen Wealth Partners Inc acquired a new stake in Wendy's in the 4th quarter valued at $33,000. 85.96% of the stock is owned by institutional investors and hedge funds.

About Wendy's

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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