The Wendy's Company $WEN Stake Boosted by Caitong International Asset Management Co. Ltd

Key Points

• Caitong International Asset Management increased its Wendy’s stake by 4,834.1% in the second quarter, acquiring 358,885 additional shares for a total holding valued at approximately $3.04 million. Institutional investors collectively own 85.96% of WEN’s outstanding shares.
• Wendy’s reported quarterly EPS of $0.18, beating estimates by $0.02, while revenue of $570.6 million exceeded expectations and rose 1.8% year over year. The company declared a quarterly dividend of $0.07 per share, representing a 3.2% yield.
• Reports that activist investor Nelson Peltz and partners may pursue a go-private transaction boosted investor interest, but analysts remain cautious: Wendy’s has a consensus “Reduce” rating and an average price target of $7.76.

Caitong International Asset Management Co. Ltd lifted its stake in shares of The Wendy's Company (NASDAQ:WEN - Free Report) by 4,834.1% during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 366,309 shares of the restaurant operator's stock after purchasing an additional 358,885 shares during the quarter. Caitong International Asset Management Co. Ltd owned about 0.19% of Wendy's worth $3,037,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also made changes to their positions in the company. Hilton Head Capital Partners LLC bought a new position in Wendy's during the 4th quarter worth $30,000. Cassaday & Co Wealth Management LLC bought a new stake in Wendy's in the first quarter valued at $30,000. Fifth Third Bancorp boosted its holdings in shares of Wendy's by 161.0% during the fourth quarter. Fifth Third Bancorp now owns 3,829 shares of the restaurant operator's stock valued at $32,000 after acquiring an additional 2,362 shares during the period. SJS Investment Consulting Inc. acquired a new position in shares of Wendy's during the first quarter valued at $32,000. Finally, Gen Wealth Partners Inc bought a new position in shares of Wendy's during the fourth quarter worth about $33,000. Institutional investors own 85.96% of the company's stock.

Key Headlines Impacting Wendy's

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

• Positive Sentiment: Reports that Nelson Peltz and an investor group may launch a go-private offer for Wendy’s fueled strong buying interest. Investors may anticipate a takeover premium and see potential for Peltz to improve the struggling restaurant chain’s operations outside the public markets. Wendy's jumps on report investor Nelson Peltz preparing bid Wendy’s shares jump 15% as Nelson Peltz prepares bid to take struggling chain private
• Positive Sentiment: Commentary suggests the potential transaction reflects investor confidence that Wendy’s turnaround efforts could create more value under activist ownership. The takeover discussion follows a period of weak sentiment toward the chain, making the possibility of strategic changes a positive catalyst for WEN. Wendy’s Takeover: Peltz May See What Public Markets Cannot

Wendy's Price Performance

Shares of Wendy's stock opened at $8.64 on Friday. 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's 50-day moving average price is $7.51 and its two-hundred day moving average price is $7.40. The Wendy's Company has a 52 week low of $6.07 and a 52 week high of $10.84. The stock has a market cap of $1.65 billion, a PE ratio of 13.09, a price-to-earnings-growth 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. As a group, sell-side analysts anticipate 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 given a dividend of $0.07 per share. This represents a $0.28 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Tuesday, September 1st. Wendy's's dividend payout ratio is 84.85%.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on WEN. Weiss Ratings reiterated a "sell (d+)" rating on shares of Wendy's in a research report on Friday, July 17th. TD Cowen restated a "hold" rating and issued a $6.00 target price on shares of Wendy's in a research report on Tuesday, May 12th. JPMorgan Chase & Co. restated an "underweight" rating and issued a $6.00 price target (down from $7.00) on shares of Wendy's in a research note on Monday, May 11th. UBS Group reaffirmed a "neutral" rating and set a $8.00 price target on shares of Wendy's in a report on Monday, August 10th. Finally, BMO Capital Markets reiterated a "market perform" rating on shares of Wendy's in a research report on Monday, August 10th. Two investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and six have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Wendy's currently has a consensus rating of "Reduce" and an average price target of $7.76.

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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