Vanguard Group Inc. Sells 1,455,546 Shares of The Wendy's Company $WEN

Key Points

• Vanguard Group reduced its stake in Wendy’s by 7.8% in the fourth quarter, selling 1.46 million shares and leaving it with about 17.1 million shares valued at roughly $142.7 million.
• Institutional ownership remains high, with hedge funds and other institutional investors holding 85.96% of Wendy’s shares. Several firms added to positions, including Alps Advisors, Quinn Opportunity Partners, and Principal Financial Group.
• Analyst sentiment is cautious to bearish: the stock carries an average rating of “Reduce” with a consensus price target of $8.39, while recent reports from JPMorgan and others have cut targets or reiterated underweight/sell views.

Vanguard Group Inc. lessened its stake in The Wendy's Company (NASDAQ:WEN - Free Report) by 7.8% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 17,134,262 shares of the restaurant operator's stock after selling 1,455,546 shares during the period. Vanguard Group Inc. owned approximately 9.00% of Wendy's worth $142,728,000 at the end of the most recent quarter.

Other hedge funds have also added to or reduced their stakes in the company. Alps Advisors Inc. grew its holdings in shares of Wendy's by 71.7% in the third quarter. Alps Advisors Inc. now owns 634,304 shares of the restaurant operator's stock worth $5,810,000 after acquiring an additional 264,905 shares during the period. Quinn Opportunity Partners LLC boosted its position in Wendy's by 382.8% in the third quarter. Quinn Opportunity Partners LLC now owns 1,216,811 shares of the restaurant operator's stock worth $11,146,000 after purchasing an additional 964,771 shares during the last quarter. Public Sector Pension Investment Board bought a new stake in shares of Wendy's during the 3rd quarter valued at about $5,651,000. Ruffer LLP bought a new stake in shares of Wendy's during the 4th quarter valued at about $3,194,000. Finally, Principal Financial Group Inc. increased its position in shares of Wendy's by 107.3% during the 3rd quarter. Principal Financial Group Inc. now owns 759,620 shares of the restaurant operator's stock valued at $6,958,000 after purchasing an additional 393,105 shares during the last quarter. 85.96% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

WEN has been the subject of a number of research reports. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Wendy's in a report on Monday, April 20th. Wall Street Zen downgraded shares of Wendy's from a "hold" rating to a "sell" rating in a research report on Saturday, February 21st. Barclays reduced their price objective on Wendy's from $9.00 to $8.00 and set an "equal weight" rating for the company in a research note on Tuesday, February 17th. JPMorgan Chase & Co. reiterated an "underweight" rating and set a $6.00 target price (down from $7.00) on shares of Wendy's in a research report on Monday. Finally, Deutsche Bank Aktiengesellschaft set a $8.00 price target on Wendy's in a report on Tuesday, February 17th. Four analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and six have issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Reduce" and a consensus price target of $8.39.

Wendy's Stock Performance

Shares of NASDAQ WEN opened at $6.76 on Tuesday. The company has a market cap of $1.29 billion, a P/E ratio of 8.67, a P/E/G ratio of 2.06 and a beta of 0.35. The Wendy's Company has a 52-week low of $6.37 and a 52-week high of $12.52. The company has a debt-to-equity ratio of 29.25, a quick ratio of 1.81 and a current ratio of 1.83. The firm's fifty day moving average is $7.02 and its two-hundred day moving average is $7.84.

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

Wendy's Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be given a dividend of $0.14 per share. The ex-dividend date is Monday, June 1st. This represents a $0.56 dividend on an annualized basis and a yield of 8.3%. Wendy's's dividend payout ratio is 71.79%.

Key Stories Impacting Wendy's

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

• Positive Sentiment: Wendy’s reported first-quarter earnings above Wall Street estimates and reiterated its full-year outlook, suggesting management still sees room for improvement in the turnaround. These Analysts Revise Their Forecasts On Wendy's After Q1 Results
• Positive Sentiment: Management says its “Project Fresh” turnaround is gaining momentum, which could eventually support better sales and margins if execution improves. Wendy’s Q1 sales decline 7.8% as Project Fresh turnaround gains momentum
• Neutral Sentiment: Wendy’s is closing additional stores in some states, a move that may help streamline the footprint but also highlights ongoing pressure in parts of the business. Wendy’s Is Closing More Stores. These States Are Being Hit the Hardest
• Neutral Sentiment: News about a Wendy’s legend tied to an iconic KFC item is mostly brand trivia and is unlikely to materially affect the stock. The Iconic KFC Item That Was Actually Invented By A Wendy's Legend
• Negative Sentiment: JPMorgan reiterated an underweight rating and cut its price target to $6, reinforcing concerns that Wendy’s is losing ground in the competitive burger category. These Analysts Revise Their Forecasts On Wendy's After Q1 Results
• Negative Sentiment: Recent reports say Wendy’s Q1 sales fell 7.8%, underscoring continued demand weakness despite the turnaround effort. Wendy’s Q1 sales decline 7.8% as Project Fresh turnaround gains momentum

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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