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

Key Points

• Wendy’s has a consensus analyst rating of “Reduce”, with 23 analysts covering the stock and an average 1-year price target of about $8.56. The latest analyst actions were mixed, including recent target cuts from Stephens and UBS.
• The company most recently beat earnings estimates with quarterly EPS of $0.12 versus the expected $0.10, but revenue came in below forecasts at $432.3 million. Wendy’s also guided FY 2026 EPS to $0.56-$0.60.
• Wendy’s declared a quarterly dividend of $0.14 per share, implying an annualized yield of roughly 8.3%. The article also notes recent promotional activity, including a Minions & Monsters campaign that could support near-term sales.

The Wendy's Company (NASDAQ:WEN - Get Free Report) has been given an average rating of "Reduce" by the twenty-three analysts that are covering the firm, MarketBeat reports. Six equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and five have issued a buy rating on the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $8.5568.

A number of research analysts have recently issued reports on WEN shares. Stephens lowered their price target on Wendy's from $9.00 to $8.00 and set an "equal weight" rating on the stock in a report on Friday, February 13th. UBS Group lowered their price target on Wendy's from $8.50 to $7.50 and set a "neutral" rating on the stock in a report on Tuesday, February 17th. Citigroup upped their price target on Wendy's from $7.25 to $7.75 and gave the company a "neutral" rating in a report on Monday, May 11th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Wendy's in a report on Monday, April 20th. Finally, Deutsche Bank Aktiengesellschaft set a $8.00 price target on Wendy's in a report on Tuesday, February 17th.

Wendy's Trading Down 0.4%

NASDAQ WEN opened at $6.71 on Wednesday. Wendy's has a 12 month low of $6.37 and a 12 month high of $12.51. The stock has a market cap of $1.28 billion, a P/E ratio of 8.60, a P/E/G ratio of 0.49 and a beta of 0.38. The stock's fifty day moving average price is $7.17 and its 200-day moving average price is $7.67. The company has a current ratio of 1.83, a quick ratio of 1.81 and a debt-to-equity ratio of 29.25.

Wendy's (NASDAQ:WEN - Get Free Report) last released its earnings results on Friday, May 8th. The restaurant operator reported $0.12 EPS for the quarter, topping 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 for the quarter, compared to analysts' expectations of $518.03 million. During the same period in the prior year, the firm posted $0.20 earnings per share. The company's quarterly revenue was up 3.3% on a year-over-year basis. Wendy's has set its FY 2026 guidance at 0.560-0.600 EPS. As a group, equities analysts forecast that Wendy's will post 0.58 EPS for the current fiscal year.

Wendy's Dividend Announcement

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

Trending Headlines about Wendy's

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

• Positive Sentiment: Wendy’s launched a Minions & Monsters promotional campaign featuring co-branded meals, new menu items, collectible toys, and a new banana-themed Frosty creation, which could boost customer interest and near-term sales. Wendy's Partners With 'Minions' Franchise On Co-Branded Meals
• Positive Sentiment: Multiple reports highlighted strong consumer buzz around Wendy’s new limited-time meal and Frosty variant, suggesting the chain may be trying to drive engagement with a fresh value proposition. Wendys Unveils a New Meal and a First-Ever Frosty Creation Is This the Best Fast-Food Value of the Year?
• Neutral Sentiment: Coverage about short interest showed no meaningful new information, with reported short interest at zero shares, so it is unlikely to be a material driver for the stock today.
• Negative Sentiment: An analysis piece said Wendy’s self-service kiosks are creating customer-service issues, which could weigh on investor sentiment if the rollout hurts satisfaction or speeds up traffic declines. Analysis: Wendy's kiosks create a customer-service problem

Institutional Inflows and Outflows

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

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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