Royal Bank of Canada Reduces Position in The Wendy's Company $WEN

Key Points

• Royal Bank of Canada cut its Wendy’s stake by 47.4% in the first quarter, selling 226,847 shares and retaining 251,850 shares worth approximately $1.75 million. Institutional investors collectively own 85.96% of the company.
• Wendy’s surpassed quarterly expectations, reporting $0.18 in earnings per share versus the $0.16 consensus estimate and $570.57 million in revenue. Revenue increased 1.8% year over year, although EPS declined from $0.29 in the prior-year quarter.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and an average price target of $7.76. Wendy’s declared a quarterly dividend of $0.07 per share, equivalent to a 3.3% annualized yield.

Royal Bank of Canada decreased its position in The Wendy's Company (NASDAQ:WEN - Free Report) by 47.4% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 251,850 shares of the restaurant operator's stock after selling 226,847 shares during the quarter. Royal Bank of Canada owned about 0.13% of Wendy's worth $1,750,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors also recently made changes to their positions in WEN. Hilton Head Capital Partners LLC purchased a new position in Wendy's during the fourth quarter worth about $30,000. Fifth Third Bancorp grew its stake in Wendy's by 161.0% during the fourth quarter. Fifth Third Bancorp now owns 3,829 shares of the restaurant operator's stock worth $32,000 after buying an additional 2,362 shares during the period. Gen Wealth Partners Inc acquired a new stake in Wendy's in the 4th quarter valued at $33,000. Cassaday & Co Wealth Management LLC acquired a new stake in shares of Wendy's in the first quarter valued at about $30,000. Finally, SJS Investment Consulting Inc. acquired a new stake in Wendy's in the first quarter valued at approximately $32,000. Hedge funds and other institutional investors own 85.96% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on WEN shares. BMO Capital Markets reissued a "market perform" rating on shares of Wendy's in a research report on Monday, August 10th. Weiss Ratings reissued a "sell (d+)" rating on shares of Wendy's in a report on Friday, July 17th. Citigroup raised their price objective on Wendy's from $7.25 to $8.00 and gave the company a "neutral" rating in a research note on Monday, August 10th. Morgan Stanley set a $5.50 target price on shares of Wendy's in a research report on Monday, August 10th. Finally, Stifel Nicolaus set a $6.00 target price on Wendy's in a report on Thursday, April 30th. Two equities 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's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average price target of $7.76.

Wendy's Stock Down 2.1%

WEN opened at $8.44 on Wednesday. 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 stock's fifty day moving average is $7.59 and its 200-day moving average is $7.41. The Wendy's Company has a one year low of $6.07 and a one year high of $10.84. The company has a market capitalization of $1.61 billion, a PE ratio of 12.79, a P/E/G ratio of 0.69 and a beta of 0.37.

Wendy's (NASDAQ:WEN - Get Free Report) last posted its quarterly earnings data on Friday, August 7th. The restaurant operator reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.02. The company had revenue of $570.57 million during the quarter, compared to analyst estimates of $557.13 million. Wendy's had a net margin of 5.72% and a return on equity of 115.31%. The business's revenue for the quarter was up 1.8% on a year-over-year basis. During the same quarter last year, the firm posted $0.29 EPS. On average, equities analysts predict that The Wendy's Company will post 0.53 EPS for the current fiscal year.

Wendy's Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be paid a dividend of $0.07 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.28 annualized dividend and a dividend yield of 3.3%. Wendy's's dividend payout ratio (DPR) is currently 84.85%.

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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