First Eagle Investment Management LLC Buys New Shares in The Wendy's Company $WEN

Key Points

• First Eagle Investment Management acquired 353,023 Wendy’s shares worth approximately $2.9 million, giving it a 0.19% stake. Other major investors also increased or initiated positions, with institutional ownership reaching 85.96%.
• Wendy’s exceeded quarterly expectations, reporting $0.18 earnings per share versus the $0.16 consensus estimate and revenue of $570.57 million, up 1.8% year over year.
• Wendy’s shares opened at $8.03, while analysts maintained a generally cautious outlook: the stock has a consensus “Reduce” rating and an average price target of $7.78. The company declared a quarterly dividend of $0.07, representing a 3.5% yield.

First Eagle Investment Management LLC acquired a new position in shares of The Wendy's Company (NASDAQ:WEN - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 353,023 shares of the restaurant operator's stock, valued at approximately $2,927,000. First Eagle Investment Management LLC owned 0.19% of Wendy's as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also made changes to their positions in WEN. Trian Fund Management L.P. acquired a new stake in shares of Wendy's during the 2nd quarter worth approximately $252,583,000. BlackRock Inc. increased its position 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 period. Marshall Wace LLP acquired a new position in shares of Wendy's in the third quarter valued at $36,912,000. Healthcare of Ontario Pension Plan Trust Fund acquired a new position in shares of Wendy's in the first quarter valued at $26,062,000. Finally, AQR Capital Management LLC lifted its position in Wendy's by 38.1% in the fourth quarter. AQR Capital Management LLC now owns 11,705,610 shares of the restaurant operator's stock worth $97,508,000 after purchasing an additional 3,227,366 shares during the period. Institutional investors and hedge funds own 85.96% of the company's stock.

Wendy's Price Performance

Shares of WEN opened at $8.03 on Monday. The firm has a market capitalization of $1.53 billion, a price-to-earnings ratio of 12.17, a PEG ratio of 0.81 and a beta of 0.39. The company has a debt-to-equity ratio of 27.95, a quick ratio of 1.88 and a current ratio of 1.90. The business's fifty day moving average price is $8.00 and its two-hundred day moving average price is $7.48. The Wendy's Company has a 52 week low of $6.07 and a 52 week high of $10.45.

Wendy's (NASDAQ:WEN - Get Free Report) last released its earnings results on Friday, August 7th. The restaurant operator reported $0.18 earnings per share for the quarter, topping analysts' consensus estimates of $0.16 by $0.02. The company had revenue of $570.57 million during the quarter, compared to the consensus estimate of $557.13 million. Wendy's had a return on equity of 115.31% and a net margin of 5.72%.The firm's quarterly revenue was up 1.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.29 earnings per share. On average, analysts predict that The Wendy's Company will post 0.5 earnings per share for the current year.

Wendy's Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be issued a $0.07 dividend. This represents a $0.28 annualized dividend and a yield of 3.5%. The ex-dividend date is Tuesday, September 1st. Wendy's's dividend payout ratio is currently 42.42%.

Analyst Ratings Changes

A number of research firms have weighed in on WEN. Morgan Stanley set a $5.50 price target on shares of Wendy's in a research note on Monday, August 10th. KeyCorp reissued a "sector weight" rating on shares of Wendy's in a research report on Tuesday, August 11th. Argus raised Wendy's from a "hold" rating to a "buy" rating and set a $12.00 price objective for the company in a report on Wednesday, May 13th. UBS Group reissued a "neutral" rating and issued a $8.00 target price on shares of Wendy's in a report on Monday, August 10th. Finally, TD Cowen reiterated a "hold" rating and set a $6.00 price target on shares of Wendy's in a research report on Tuesday, May 12th. Two equities 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 company's stock. According to MarketBeat, Wendy's has a consensus rating of "Reduce" and a consensus target price of $7.78.

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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