Connor Clark & Lunn Investment Management Ltd. Purchases New Position in The Wendy's Company $WEN

Key Points

• Connor Clark & Lunn Investment Management bought 1.67 million Wendy’s shares worth approximately $13.8 million, taking a 0.87% stake. Institutional investors and hedge funds collectively own 85.96% of the company.
• Wendy’s exceeded quarterly earnings and revenue expectations, reporting EPS of $0.18 and revenue of $570.6 million, though earnings declined year over year. The company declared a $0.07 quarterly dividend, representing a 3.1% yield.
• Analyst sentiment remains cautious, with an average “Reduce” rating and a $7.76 price target versus the stock’s reported $9.12 price. Wendy’s is pursuing a turnaround focused on stronger marketing, improved food quality and customer traffic, but discount promotions could pressure margins.

Connor Clark & Lunn Investment Management Ltd. purchased a new stake in The Wendy's Company (NASDAQ:WEN - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor purchased 1,667,124 shares of the restaurant operator's stock, valued at approximately $13,820,000. Connor Clark & Lunn Investment Management Ltd. owned 0.87% of Wendy's as of its most recent SEC filing.

Other hedge funds have also recently bought and sold shares of the company. Trian Fund Management L.P. bought a new position in shares of Wendy's during the second quarter worth approximately $252,583,000. Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in Wendy's during the 1st quarter worth approximately $26,062,000. Renaissance Technologies LLC boosted its stake in Wendy's by 2,612.4% in the 1st quarter. Renaissance Technologies LLC now owns 2,340,282 shares of the restaurant operator's stock valued at $16,265,000 after purchasing an additional 2,254,000 shares during the period. Bank of America Corp DE grew its holdings in Wendy's by 5.6% in the 1st quarter. Bank of America Corp DE now owns 4,493,752 shares of the restaurant operator's stock valued at $31,232,000 after buying an additional 236,541 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd grew its holdings in Wendy's by 4,834.1% in the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 366,309 shares of the restaurant operator's stock valued at $3,037,000 after buying an additional 358,885 shares in the last quarter. 85.96% of the stock is currently owned by institutional investors and hedge funds.

Wendy's Stock Performance

Shares of Wendy's stock opened at $9.12 on Wednesday. The company has a current ratio of 1.90, a quick ratio of 1.88 and a debt-to-equity ratio of 27.95. The company has a market cap of $1.74 billion, a PE ratio of 13.82, a price-to-earnings-growth ratio of 0.72 and a beta of 0.37. The company has a 50 day moving average of $7.80 and a 200-day moving average of $7.45. The Wendy's Company has a 1-year low of $6.07 and a 1-year high of $10.62.

Wendy's (NASDAQ:WEN - Get Free Report) last announced its quarterly earnings data on Friday, August 7th. The restaurant operator reported $0.18 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.16 by $0.02. Wendy's had a net margin of 5.72% and a return on equity of 115.31%. The business had revenue of $570.57 million for the quarter, compared to analysts' expectations of $557.13 million. During the same period last year, the firm posted $0.29 earnings per share. The firm's quarterly revenue was up 1.8% compared to the same quarter last year. As a group, equities research analysts forecast that The Wendy's Company will post 0.51 earnings per share for the current fiscal year.

Wendy's Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be paid a $0.07 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $0.28 annualized dividend and a dividend yield of 3.1%. Wendy's's dividend payout ratio (DPR) is presently 84.85%.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the company. KeyCorp reiterated a "sector weight" rating on shares of Wendy's in a research note on Tuesday, August 11th. UBS Group reaffirmed a "neutral" rating and issued a $8.00 price objective on shares of Wendy's in a report on Monday, August 10th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Wendy's in a report on Friday, July 17th. Mizuho set a $6.00 target price on Wendy's in a research report on Friday, May 1st. Finally, Morgan Stanley set a $5.50 target price on Wendy's in a report on Monday, August 10th. Two research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and six have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Reduce" and an average target price of $7.76.

Wendy's News Summary

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

• Positive Sentiment: Wendy’s appointed former McDonald’s executive Tariq Hassan to the newly created role of chief marketing and customer growth officer. The hire is intended to strengthen marketing, improve customer traffic and support the company’s turnaround strategy. The Wendy’s Company Names Tariq Hassan Chief Marketing and Customer Growth Officer
• Positive Sentiment: Management is refocusing on food quality after acknowledging that cost-cutting allowed Wendy’s to lose ground to competitors. Plans to improve menu quality and “get back in the burger fight” could help rebuild brand perception, traffic and same-store sales over time. Wendy’s CEO Says Food Quality Hasn’t Been Chain’s Top Priority—Vows Changes
• Positive Sentiment: A limited-time promotion offering 10 nuggets for $1.99 may drive near-term customer visits and increase trial among value-conscious consumers. Wendy’s Launches $1.99 10-Piece Nuggets Deal
• Neutral Sentiment: The reported short-interest update shows zero shares short both before and after the measurement period, with a zero-day days-to-cover ratio. Because the data also reports an undefined percentage change, it provides no meaningful signal about short-covering or bearish positioning.
• Negative Sentiment: The $1.99 nugget offer could pressure restaurant-level margins if it encourages discount-driven sales rather than profitable incremental traffic; the deal also includes eligibility restrictions and is available only for a limited time. Wendy’s Customers Can Now Get 10 Nuggets for $1.99
• Negative Sentiment: Zacks issued a negative outlook for Wendy’s earnings, adding pressure to a stock whose turnaround still depends on improving traffic, food quality and profitability.

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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