The Wendy's Company (WEN) - What Are Brokerages Saying About This Stock?

Key Points

• Analysts remain cautious on Wendy’s: Nineteen analysts assign the stock an average “Reduce” rating, including five sells, 12 holds and two buys. The average 12-month price target is $7.75.
• Wendy’s reported quarterly EPS of $0.18, beating estimates of $0.16, while revenue rose 1.8% year over year to $570.57 million. Analysts expect full-year EPS of approximately $0.49.
• The company cut its quarterly dividend in half to $0.07, equating to a 4.4% annualized yield; institutional investors nonetheless own nearly 86% of the company’s shares.

Shares of The Wendy's Company (NASDAQ:WEN - Get Free Report) have earned an average recommendation of "Reduce" from the nineteen analysts that are presently covering the company, Marketbeat Ratings reports. Five equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and two have assigned a buy rating to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $7.75.

Several equities analysts recently issued reports on the company. BMO Capital Markets restated a "market perform" rating on shares of Wendy's in a research note on Monday, August 10th. Seaport Research Partners started coverage on shares of Wendy's in a research note on Wednesday, September 16th. They set a "neutral" rating for the company. Guggenheim reiterated a "neutral" rating on shares of Wendy's in a research note on Tuesday, September 15th. Citigroup increased their target price on shares of Wendy's from $8.00 to $8.25 and gave the stock a "neutral" rating in a report on Tuesday, September 1st. Finally, Stephens reissued an "equal weight" rating and set a $8.00 target price on shares of Wendy's in a report on Tuesday, June 23rd.

Wendy's Trading Up 1.3%

WEN opened at $6.31 on Tuesday. Wendy's has a 12-month low of $5.94 and a 12-month high of $10.12. The company has a debt-to-equity ratio of 27.95, a current ratio of 1.90 and a quick ratio of 1.88. The stock has a market capitalization of $1.20 billion, a PE ratio of 9.56, a P/E/G ratio of 0.64 and a beta of 0.40. The firm's fifty day moving average price is $7.51 and its 200 day moving average price is $7.36.

Wendy's (NASDAQ:WEN - Get Free Report) last posted its quarterly earnings results on Friday, August 7th. The restaurant operator reported $0.18 EPS for the quarter, topping 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 period last year, the firm earned $0.29 earnings per share. The company's revenue for the quarter was up 1.8% compared to the same quarter last year. As a group, research analysts expect that Wendy's will post 0.49 EPS for the current fiscal year.

Wendy's Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were issued a $0.07 dividend. This is a drop from Wendy's's previous quarterly dividend of $0.14. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $0.28 annualized dividend and a dividend yield of 4.4%. Wendy's's dividend payout ratio (DPR) is presently 42.42%.

Institutional Investors Weigh In On Wendy's

Institutional investors and hedge funds have recently bought and sold shares of the business. Trian Fund Management L.P. acquired a new position in Wendy's in the second quarter valued at approximately $252,583,000. BlackRock Inc. grew its holdings in shares of Wendy's by 21.1% during the second quarter. BlackRock Inc. now owns 26,314,724 shares of the restaurant operator's stock valued at $218,149,000 after purchasing an additional 4,576,075 shares during the last quarter. State Street Corp raised its position in shares of Wendy's by 20.1% during the 2nd quarter. State Street Corp now owns 6,566,985 shares of the restaurant operator's stock worth $54,440,000 after purchasing an additional 1,101,063 shares during the period. Bank of America Corp DE raised its position in shares of Wendy's by 5.6% during the 1st quarter. Bank of America Corp DE now owns 4,493,752 shares of the restaurant operator's stock worth $31,232,000 after purchasing an additional 236,541 shares during the period. Finally, Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in shares of Wendy's during the 1st quarter worth approximately $26,062,000. Institutional investors and hedge funds own 85.96% of the company's stock.

Wendy's Company Profile

Wendy's Co NASDAQ: WEN operates and franchises the Wendy's quick-service restaurant chain. Its menu primarily features hamburgers made with fresh, never-frozen beef, along with chicken sandwiches, nuggets, salads, french fries, breakfast items, beverages and the signature Frosty dessert.

Founded by Dave Thomas in Columbus, Ohio, in 1969, Wendy's has grown into an international restaurant brand. The company serves customers through a network of company-operated and franchised restaurants, with a significant presence in the United States and additional locations in international markets.

In addition to restaurant sales, Wendy's supports ordering through digital channels, including its mobile application and website, as well as delivery services.

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