The Wendy's Company $WEN Shares Bought by State Street Corp

Key Points

• State Street increased its Wendy’s stake by 20.1% in the second quarter, acquiring 1.1 million additional shares and bringing its holdings to approximately 3.44% of the company. Institutional investors and hedge funds collectively own 85.96% of WEN.
• Wendy’s reported quarterly revenue of $570.6 million and EPS of $0.18, exceeding analyst expectations, but shares opened at $6.51—near their 52-week low—and analysts maintain a consensus “Reduce” rating with an average price target of $7.82.
• Franchisee financial problems remain a key risk: a major operator filed for bankruptcy after Wendy’s sought to terminate its rights to run about 314 restaurants, while the company has reportedly closed roughly 245 locations this year. Wendy’s also cut its quarterly dividend in half to $0.07 per share.

State Street Corp grew its position in The Wendy's Company (NASDAQ:WEN - Free Report) by 20.1% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 6,566,985 shares of the restaurant operator's stock after acquiring an additional 1,101,063 shares during the quarter. State Street Corp owned approximately 3.44% of Wendy's worth $54,440,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also made changes to their positions in the company. The Manufacturers Life Insurance Company boosted its holdings in Wendy's by 130.0% in the second quarter. The Manufacturers Life Insurance Company now owns 86,902 shares of the restaurant operator's stock worth $720,000 after purchasing an additional 49,124 shares during the period. WINTON GROUP Ltd lifted its position in shares of Wendy's by 48.8% in the 2nd quarter. WINTON GROUP Ltd now owns 291,578 shares of the restaurant operator's stock worth $2,417,000 after buying an additional 95,596 shares during the last quarter. NewEdge Advisors LLC boosted its holdings in shares of Wendy's by 1,557.9% in the 2nd quarter. NewEdge Advisors LLC now owns 12,832 shares of the restaurant operator's stock valued at $106,000 after buying an additional 12,058 shares during the period. Baird Financial Group Inc. boosted its holdings in shares of Wendy's by 13.0% in the 2nd quarter. Baird Financial Group Inc. now owns 435,107 shares of the restaurant operator's stock valued at $3,607,000 after buying an additional 50,161 shares during the period. Finally, Nykredit A S acquired a new stake in Wendy's during the second quarter worth about $37,000. 85.96% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Wendy's

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

• Neutral Sentiment: Wendy’s released an emo and pop-punk-inspired six-song album, “Songs to Listen to in a Wendy’s Parking Lot,” featuring artists from the genre. The campaign could increase brand engagement, but there is no disclosed direct impact on revenue or earnings. Wendy’s Goes Emo with Songs to Listen to in a Wendy’s Parking Lot Album
• Neutral Sentiment: A report showed short interest of zero shares as of September 24, implying no measurable short positioning. However, the accompanying description of a “significant increase” conflicts with the reported figure, making the data difficult to interpret and unlikely to provide a reliable trading signal.
• Negative Sentiment: A major Wendy’s franchisee has filed for bankruptcy protection after Wendy’s sought to terminate its rights to operate approximately 314 restaurants. The franchisee had already closed dozens of locations, and restaurants in Georgia, Ohio, Massachusetts, Michigan, Indiana and Arkansas may face closures, ownership changes or operational disruption. Wendy’s Tried to Terminate a Franchisee’s Right to Operate 314 Restaurants
• Negative Sentiment: Separate coverage says Wendy’s has closed roughly 245 restaurants this year, including about 60 linked to the bankrupt operator. The developments highlight broader franchisee profitability and liquidity problems, potentially reducing systemwide sales and royalty income and adding pressure to Wendy’s turnaround efforts. Wendy’s Has Closed 245 Restaurants This Year
• Negative Sentiment: Wendy’s also weakened alongside McDonald’s during broader restaurant-sector trading, suggesting investors are cautious about consumer demand and franchisee economics across the industry. McDonald’s Falls as Investor Day Sets Franchisee Support Plan

Wendy's Price Performance

Shares of NASDAQ:WEN opened at $6.51 on Friday. The firm's 50 day moving average is $7.79 and its two-hundred day moving average is $7.43. The Wendy's Company has a 52 week low of $6.07 and a 52 week high of $10.12. The firm has a market capitalization of $1.24 billion, a P/E ratio of 9.86, a PEG ratio of 0.69 and a beta of 0.39. The company has a current ratio of 1.90, a quick ratio of 1.88 and a debt-to-equity ratio of 27.95.

Wendy's (NASDAQ:WEN - Get Free Report) last issued its quarterly earnings data on Friday, August 7th. The restaurant operator reported $0.18 earnings per share (EPS) for the quarter, topping the consensus estimate 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 in the previous year, the firm posted $0.29 earnings per share. The business's revenue was up 1.8% on a year-over-year basis. Analysts anticipate that The Wendy's Company will post 0.5 earnings per share for the current year.

Wendy's Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were given a dividend of $0.07 per share. This is a drop from Wendy's's previous quarterly dividend of $0.14. The ex-dividend date was Tuesday, September 1st. This represents a $0.28 dividend on an annualized basis and a yield of 4.3%. Wendy's's payout ratio is presently 42.42%.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on WEN shares. Citigroup raised 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. Guggenheim reiterated a "neutral" rating on shares of Wendy's in a research report on Tuesday, September 15th. Morgan Stanley set a $5.50 price target on Wendy's in a report on Monday, August 10th. UBS Group restated a "neutral" rating and set a $8.00 price objective on shares of Wendy's in a research report on Monday, August 10th. Finally, Seaport Research Partners began coverage on Wendy's in a research note on Wednesday, September 16th. They set a "neutral" rating for the company. Two investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and five have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $7.82.

Wendy's Profile

The Wendy's Company NASDAQ: WEN operates and franchises the Wendy's quick-service restaurant chain. Its restaurants serve hamburgers, chicken sandwiches, salads, fries, breakfast items, baked goods, beverages and other menu offerings. The company also supports restaurant operations through digital ordering, delivery and loyalty programs.

Wendy's was founded by Dave Thomas in Columbus, Ohio, in 1969. The brand is known for its square hamburgers, made-to-order preparation and “old-fashioned” positioning.

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