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

Key Points

• Wendy’s has a consensus “Reduce” rating from 22 analysts: six rate it a sell, 13 recommend holding, and three recommend buying. The average 12-month price target is $8.04.
• The stock opened at $7.65, with a market capitalization of $1.46 billion and a 12-month range of $6.07 to $10.84. Recent analyst actions included price-target cuts from Citigroup and $6 targets from Stifel Nicolaus and TD Cowen.
• Wendy’s exceeded quarterly EPS expectations with $0.12 versus $0.10, although revenue of $432.3 million fell short of the $518.0 million estimate. The company pays a quarterly dividend of $0.14, equal to a 7.3% annualized yield.

Shares of The Wendy's Company (NASDAQ:WEN - Get Free Report) have been assigned an average recommendation of "Reduce" from the twenty-two analysts that are presently covering the stock, MarketBeat reports. Six investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating and three have assigned a buy rating to the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $8.0375.

Several research firms have commented on WEN. Stifel Nicolaus set a $6.00 target price on shares of Wendy's in a research note on Thursday, April 30th. TD Cowen reissued a "hold" rating and set a $6.00 price target on shares of Wendy's in a research note on Tuesday, May 12th. KeyCorp restated a "sector weight" rating on shares of Wendy's in a report on Wednesday, June 10th. Citigroup lowered their price objective on Wendy's from $7.75 to $7.25 and set a "neutral" rating for the company in a research report on Tuesday. Finally, Stephens reiterated an "equal weight" rating and issued a $8.00 target price on shares of Wendy's in a research note on Tuesday, June 23rd.

Wendy's Price Performance

NASDAQ:WEN opened at $7.65 on Thursday. The firm has a market cap of $1.46 billion, a price-to-earnings ratio of 9.81, a price-to-earnings-growth ratio of 0.56 and a beta of 0.36. The company has a current ratio of 1.83, a quick ratio of 1.81 and a debt-to-equity ratio of 29.25. The company's 50-day moving average is $7.41 and its two-hundred day moving average is $7.45. Wendy's has a 12-month low of $6.07 and a 12-month high of $10.84.

Wendy's (NASDAQ:WEN - Get Free Report) last released its quarterly earnings results on Friday, May 8th. The restaurant operator reported $0.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.10 by $0.02. The company had revenue of $432.30 million for the quarter, compared to analysts' expectations 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 for the quarter was up 3.3% compared to the same quarter last year. During the same period last year, the company earned $0.20 EPS. Wendy's has set its FY 2026 guidance at 0.560-0.600 EPS. Research analysts expect that Wendy's will post 0.58 EPS for the current year.

Wendy's Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were issued a $0.14 dividend. The ex-dividend date was Monday, June 1st. This represents a $0.56 annualized dividend and a yield of 7.3%. Wendy's's payout ratio is 71.79%.

Institutional Investors Weigh In On Wendy's

Hedge funds have recently modified their holdings of the stock. M&T Bank Corp increased its position in Wendy's by 8.4% during the second quarter. M&T Bank Corp now owns 16,987 shares of the restaurant operator's stock worth $194,000 after purchasing an additional 1,310 shares during the last quarter. State of Alaska Department of Revenue boosted its holdings in shares of Wendy's by 1.5% in the 4th quarter. State of Alaska Department of Revenue now owns 91,885 shares of the restaurant operator's stock valued at $765,000 after purchasing an additional 1,321 shares during the last quarter. Brown Financial Advisors grew its stake in shares of Wendy's by 4.7% during the 2nd quarter. Brown Financial Advisors now owns 29,908 shares of the restaurant operator's stock valued at $342,000 after buying an additional 1,339 shares during the period. Bank of Nova Scotia grew its stake in shares of Wendy's by 3.4% during the 3rd quarter. Bank of Nova Scotia now owns 40,993 shares of the restaurant operator's stock valued at $375,000 after buying an additional 1,343 shares during the period. Finally, Transcend Capital Advisors LLC increased its holdings in shares of Wendy's by 10.3% during the 4th quarter. Transcend Capital Advisors LLC now owns 14,449 shares of the restaurant operator's stock worth $120,000 after buying an additional 1,350 shares during the last quarter. 85.96% of the stock is owned by institutional investors and hedge funds.

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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