The Wendy's Company (NASDAQ:WEN) Given Consensus Rating of "Reduce" by Analysts

Key Points

• Analysts hold a consensus “Reduce” rating on Wendy’s: six recommend selling, thirteen advise holding and two recommend buying. The average 12-month price target is $7.76.
• Institutional investors own approximately 85.96% of Wendy’s shares, with Trian Fund Management initiating a roughly $252.6 million stake and BlackRock increasing its holdings by 21.1%.
• Wendy’s exceeded quarterly expectations with $0.18 in EPS and $570.6 million in revenue, but analysts have lowered future EPS forecasts. The company declared a quarterly dividend of $0.07 per share, representing a 3.1% yield.

The Wendy's Company (NASDAQ:WEN - Get Free Report) has earned a consensus rating of "Reduce" from the twenty-one analysts that are currently covering the company, Marketbeat.com reports. Six equities research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and two have given a buy rating to the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $7.7632.

WEN has been the subject of several recent research reports. Weiss Ratings reiterated a "sell (d+)" rating on shares of Wendy's in a report on Friday, July 17th. BMO Capital Markets restated a "market perform" rating on shares of Wendy's in a research note on Monday, August 10th. Stephens restated an "equal weight" rating and issued a $8.00 price target on shares of Wendy's in a research note on Tuesday, June 23rd. JPMorgan Chase & Co. reaffirmed an "underweight" rating and set a $6.00 price objective (down from $7.00) on shares of Wendy's in a research report on Monday, May 11th. Finally, TD Cowen reiterated a "hold" rating and set a $6.00 price objective on shares of Wendy's in a research note on Tuesday, May 12th.

Hedge Funds Weigh In On Wendy's

Hedge funds have recently bought and sold shares of the company. Trian Fund Management L.P. purchased a new stake in Wendy's during the 2nd quarter valued at about $252,583,000. BlackRock Inc. raised its holdings in Wendy's by 21.1% in the second quarter. BlackRock Inc. now owns 26,314,724 shares of the restaurant operator's stock worth $218,149,000 after buying an additional 4,576,075 shares during the last quarter. Marshall Wace LLP purchased a new position in Wendy's in the third quarter worth about $36,912,000. Healthcare of Ontario Pension Plan Trust Fund bought a new position in shares of Wendy's in the first quarter worth approximately $26,062,000. Finally, AQR Capital Management LLC lifted its stake in shares of Wendy's by 38.1% in the fourth quarter. AQR Capital Management LLC now owns 11,705,610 shares of the restaurant operator's stock worth $97,508,000 after buying an additional 3,227,366 shares in the last quarter. Institutional investors own 85.96% of the company's stock.

Trending Headlines about Wendy's

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

• Positive Sentiment: A Wendy’s employee reportedly reached Yale after receiving financial support from company bosses, providing favorable publicity for the brand and its workplace culture, although the story is unlikely to materially affect WEN’s valuation. Wendy’s worker heads to Yale after his bosses paid his way through college
• Neutral Sentiment: Coverage of Wendy Williams’ public appearances and Wendy’s restaurant design history is unrelated to The Wendy’s Company and should have no meaningful impact on WEN shares. Wendy Williams pleads for freedom in rare public sighting Wendy’s iconic 80s sunrooms
• Negative Sentiment: Zacks Research reduced its EPS forecasts across several periods, including fiscal 2026 earnings to $0.53 from $0.57, fiscal 2027 earnings to $0.54 from $0.59, and fiscal 2028 earnings to $0.57 from $0.68. The revisions signal weaker expected profitability and could pressure investor sentiment. Zacks Research earnings estimates for Wendy’s
• Negative Sentiment: A Chicago woman alleges that a Wendy’s cheeseburger caused a serious foodborne illness requiring hospitalization and nearly $93,000 in medical bills. The lawsuit remains an allegation, but it creates potential legal, reputational and food-safety risks for WEN. Woman alleges Wendy’s meal caused foodborne illness

Wendy's Price Performance

NASDAQ:WEN opened at $9.01 on Monday. 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 firm's 50-day moving average price is $7.72 and its 200-day moving average price is $7.43. The company has a market capitalization of $1.72 billion, a PE ratio of 13.65, a P/E/G ratio of 0.72 and a beta of 0.37. Wendy's has a 1-year low of $6.07 and a 1-year high of $10.72.

Wendy's (NASDAQ:WEN - Get Free Report) last issued its quarterly earnings results on Friday, August 7th. The restaurant operator reported $0.18 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.16 by $0.02. Wendy's had a net margin of 5.72% and a return on equity of 115.31%. The company had revenue of $570.57 million during the quarter, compared to analysts' expectations of $557.13 million. During the same period last year, the company posted $0.29 EPS. Wendy's's revenue was up 1.8% on a year-over-year basis. On average, equities analysts predict that Wendy's will post 0.52 EPS for the current fiscal year.

Wendy's Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a dividend of $0.07 per share. The ex-dividend date is Tuesday, September 1st. This represents a $0.28 annualized dividend and a dividend yield of 3.1%. Wendy's's dividend payout ratio (DPR) is presently 84.85%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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