The Wendy's Company $WEN Shares Newly Bought by Bank of America Corp DE

Key Points

• Bank of America acquired 1.26 million Wendy’s shares during the second quarter, worth approximately $10.5 million and representing about 0.66% of the company. Institutional investors collectively owned 85.96% of Wendy’s stock.
• Wendy’s reported quarterly EPS of $0.18, topping estimates of $0.16, while revenue rose 1.8% year over year to $570.6 million. However, the company cut its quarterly dividend from $0.14 to $0.07, resulting in a 4.3% annualized yield.
• WEN shares opened at $6.55, near their one-year low, and analysts remain cautious: the stock has a consensus “Reduce” rating with an average price target of $7.82.

Bank of America Corp DE bought a new position in shares of The Wendy's Company (NASDAQ:WEN - Free Report) during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 1,263,315 shares of the restaurant operator's stock, valued at approximately $10,473,000. Bank of America Corp DE owned approximately 0.66% of Wendy's at the end of the most recent quarter.

Other institutional investors have also recently bought and sold shares of the company. Global Retirement Partners LLC acquired a new position in shares of Wendy's during the second quarter valued at $27,000. Hilton Head Capital Partners LLC acquired a new stake in shares of Wendy's during the 4th quarter worth approximately $30,000. Cassaday & Co Wealth Management LLC acquired a new stake in shares of Wendy's during the 1st quarter worth approximately $30,000. SJS Investment Consulting Inc. bought a new stake in shares of Wendy's during the first quarter worth approximately $32,000. Finally, Rothschild Investment LLC raised its stake in shares of Wendy's by 74,800.0% during the fourth quarter. Rothschild Investment LLC now owns 7,490 shares of the restaurant operator's stock worth $62,000 after buying an additional 7,480 shares during the last quarter. Institutional investors own 85.96% of the company's stock.

Wendy's Stock Up 0.6%

Shares of Wendy's stock opened at $6.55 on Friday. The company has a market capitalization of $1.25 billion, a P/E ratio of 9.92, a price-to-earnings-growth ratio of 0.66 and a beta of 0.39. 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 business has a 50-day moving average of $7.77 and a two-hundred day moving average of $7.43. The Wendy's Company has a 1 year low of $6.07 and a 1 year high of $10.12.

Wendy's (NASDAQ:WEN - Get Free Report) last released 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. 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 for the quarter, compared to analysts' expectations of $557.13 million. During the same quarter in the previous year, the business posted $0.29 EPS. Wendy's's revenue for the quarter was up 1.8% on a year-over-year basis. As a group, equities analysts predict that The Wendy's Company will post 0.5 EPS for the current year.

Wendy's Cuts Dividend

The business 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 represents a $0.28 annualized dividend and a dividend yield of 4.3%. This is a drop from Wendy's's previous quarterly dividend of $0.14. The ex-dividend date was Tuesday, September 1st. Wendy's's dividend payout ratio is currently 42.42%.

Trending Headlines about Wendy's

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

• Positive Sentiment: Wendy’s is pursuing attention-generating marketing campaigns, including a nostalgic return to yellow packaging and a new emo/pop-punk music EP. These initiatives could improve brand engagement and customer traffic, though their direct financial impact is uncertain. Wendy’s nostalgic packaging article Wendy’s emo EP article
• Neutral Sentiment: Short interest reached 35.95% of the float, or about 48.8 million shares, as of September 15, up 1.82% from August 31. The estimated 9.07 days-to-cover ratio signals strong bearish positioning, which may pressure WEN but also creates the possibility of a short-covering rally if sentiment improves. Wendy’s short-interest report
• Neutral Sentiment: Recent institutional activity was mixed: several large investors, including BlackRock, increased holdings, while Morgan Stanley, Bank of America and other funds reduced positions. Analyst price targets also vary widely from $6 to $12, reflecting limited consensus on the company’s outlook.
• Negative Sentiment: A major Wendy’s franchisee filed for bankruptcy after the company reportedly sought to terminate its rights to operate 314 restaurants. The affected locations span multiple states, including Georgia, Ohio, Massachusetts and Mississippi. Potential closures, ownership transfers, lost royalties and disruption to sales make this the most important near-term overhang for WEN, although the bankruptcy is primarily at the franchisee level. Wendy’s franchisee bankruptcy and 314 locations

Wall Street Analyst Weigh In

WEN has been the subject of a number of analyst reports. BMO Capital Markets reaffirmed a "market perform" rating on shares of Wendy's in a research note on Monday, August 10th. Morgan Stanley set a $5.50 target price on Wendy's in a research note on Monday, August 10th. KeyCorp restated a "sector weight" rating on shares of Wendy's in a report on Tuesday, August 11th. Guggenheim restated a "neutral" rating on shares of Wendy's in a research report on Tuesday, September 15th. Finally, Citigroup upped their price target on Wendy's from $8.00 to $8.25 and gave the company a "neutral" rating in a research note on Tuesday, September 1st. Two research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and five have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Wendy's has an average rating of "Reduce" and a consensus target price of $7.82.

About Wendy's

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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