UBS Group AG Reduces Holdings in The Wendy's Company $WEN

Key Points

• UBS Group AG cut its Wendy’s stake by 25.2% in the fourth quarter, selling 676,933 shares and leaving it with 2.01 million shares valued at about $16.8 million.
• Buyout speculation is driving attention around WEN, with reports that Nelson Peltz/Trian may pursue a take-private deal; the stock surged on heavy volume and options activity also jumped.
• Wall Street remains cautious despite the takeover chatter, with multiple analysts maintaining bearish or hold-type views and a consensus rating of “Reduce” with a target price of $8.39.

UBS Group AG decreased its position in shares of The Wendy's Company (NASDAQ:WEN - Free Report) by 25.2% during the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund owned 2,011,538 shares of the restaurant operator's stock after selling 676,933 shares during the quarter. UBS Group AG owned approximately 1.06% of Wendy's worth $16,756,000 as of its most recent filing with the SEC.

Several other hedge funds also recently made changes to their positions in WEN. AQR Capital Management LLC boosted its stake in shares of Wendy's by 30.1% during the second quarter. AQR Capital Management LLC now owns 13,843,438 shares of the restaurant operator's stock worth $158,092,000 after buying an additional 3,205,269 shares during the period. Marshall Wace LLP acquired a new stake in shares of Wendy's during the third quarter worth about $36,912,000. Gotham Asset Management LLC boosted its stake in shares of Wendy's by 65.7% during the third quarter. Gotham Asset Management LLC now owns 1,479,870 shares of the restaurant operator's stock worth $13,556,000 after buying an additional 586,940 shares during the period. Quinn Opportunity Partners LLC boosted its stake in shares of Wendy's by 382.8% during the third quarter. Quinn Opportunity Partners LLC now owns 1,216,811 shares of the restaurant operator's stock worth $11,146,000 after buying an additional 964,771 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Wendy's by 5.6% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 932,711 shares of the restaurant operator's stock worth $10,652,000 after buying an additional 49,152 shares during the period. Hedge funds and other institutional investors own 85.96% of the company's stock.

Wendy's News Summary

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

• Positive Sentiment: Reports that Nelson Peltz/Trian is pursuing a potential take-private bid have sparked strong buyout speculation, sending Wendy’s shares sharply higher on heavy volume. Nelson Peltz Reportedly Wants to Take Wendy's Private. What That Means for WEN Stock.
• Positive Sentiment: Unusually high call-option activity suggests traders are positioning for further upside tied to the takeover narrative. Wendy's Shares Surge On Reported Buyout Interest From Nelson Peltz's Trian
• Neutral Sentiment: Options trading has become unusually active overall, highlighting elevated investor attention and volatility around WEN. Wendy's Sees Unusually High Options Volume NASDAQ: WEN
• Neutral Sentiment: Put-option volume also surged, showing some traders are hedging against a reversal if the buyout story loses momentum. Stock Traders Buy High Volume of Put Options on Wendy's NASDAQ: WEN
• Negative Sentiment: Separate analyst commentary remains cautious, with JPMorgan and TD Cowen reiterating bearish/underweight-type views and $6 price targets, underscoring concerns about Wendy’s fundamentals. Wendy's NASDAQ: WEN Receives Underweight Rating from JPMorgan Chase & Co.

Wendy's Price Performance

Shares of NASDAQ:WEN opened at $7.90 on Wednesday. The company has a quick ratio of 1.81, a current ratio of 1.83 and a debt-to-equity ratio of 29.25. The company has a market cap of $1.50 billion, a P/E ratio of 10.13, a PEG ratio of 1.91 and a beta of 0.35. The Wendy's Company has a 52 week low of $6.37 and a 52 week high of $12.51. The company has a 50-day moving average price of $7.03 and a 200 day moving average price of $7.83.

Wendy's (NASDAQ:WEN - Get Free Report) last announced its quarterly earnings data on Friday, May 8th. The restaurant operator reported $0.12 EPS for the quarter, beating analysts' consensus estimates of $0.10 by $0.02. The firm had revenue of $432.30 million during the quarter, compared to the consensus estimate of $518.03 million. Wendy's had a net margin of 6.77% and a return on equity of 136.46%. The firm's revenue was up 3.3% compared to the same quarter last year. During the same quarter last year, the firm earned $0.20 earnings per share. Wendy's has set its FY 2026 guidance at 0.560-0.600 EPS. Research analysts predict that The Wendy's Company will post 0.58 earnings per share for the current year.

Wendy's Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be given a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 7.1%. The ex-dividend date is Monday, June 1st. Wendy's's dividend payout ratio (DPR) is presently 71.79%.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the stock. Argus upgraded shares of Wendy's to a "hold" rating in a research note on Wednesday, January 21st. Weiss Ratings reiterated a "sell (d+)" rating on shares of Wendy's in a research note on Monday, April 20th. BMO Capital Markets decreased their target price on shares of Wendy's from $9.00 to $8.00 and set a "market perform" rating for the company in a research note on Monday. UBS Group decreased their target price on shares of Wendy's from $8.50 to $7.50 and set a "neutral" rating for the company in a research note on Tuesday, February 17th. Finally, Barclays reduced their price objective on shares of Wendy's from $9.00 to $8.00 and set an "equal weight" rating for the company in a research report on Tuesday, February 17th. Four analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and six have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus target price of $8.39.

About Wendy's

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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