The Wendy's Company (NASDAQ:WEN) Plans $0.14 Quarterly Dividend

Key Points

• The Wendy's Company has declared a quarterly dividend of $0.14 per share, which will be paid on September 16th to stockholders of record by September 2nd, representing an annualized dividend yield of 5.5%.
$0.29 per share for its last quarter, exceeding expectations, despite a 1.7% decline in revenue compared to the previous year.
• Wendy's has a robust payout ratio of 53.3% and projected earnings of $1.12 per share for the upcoming year, indicating its ability to sustain its dividend payments.

The Wendy's Company (NASDAQ:WEN - Get Free Report) declared a quarterly dividend on Friday, August 8th, RTT News reports. Stockholders of record on Tuesday, September 2nd will be paid a dividend of 0.14 per share by the restaurant operator on Tuesday, September 16th. This represents a c) annualized dividend and a dividend yield of 5.5%.

Wendy's has a payout ratio of 53.3% meaning its dividend is sufficiently covered by earnings. Research analysts expect Wendy's to earn $1.12 per share next year, which means the company should continue to be able to cover its $0.56 annual dividend with an expected future payout ratio of 50.0%.

Wendy's Price Performance

WEN stock traded up $0.15 during midday trading on Friday, reaching $10.11. 2,037,468 shares of the company's stock traded hands, compared to its average volume of 5,862,063. The company has a 50-day simple moving average of $11.10 and a two-hundred day simple moving average of $12.87. The company has a quick ratio of 1.47, a current ratio of 1.49 and a debt-to-equity ratio of 24.88. Wendy's has a 1-year low of $9.74 and a 1-year high of $20.60. The company has a market cap of $1.94 billion, a price-to-earnings ratio of 10.68, a PEG ratio of 2.04 and a beta of 0.31.

Wendy's (NASDAQ:WEN - Get Free Report) last announced its earnings results on Friday, August 8th. The restaurant operator reported $0.29 EPS for the quarter, topping the consensus estimate of $0.25 by $0.04. Wendy's had a return on equity of 85.36% and a net margin of 8.57%. During the same quarter in the previous year, the firm earned $0.27 EPS. The firm's revenue for the quarter was down 1.7% compared to the same quarter last year. On average, analysts anticipate that Wendy's will post 0.99 earnings per share for the current year.

Insider Activity at Wendy's

In other news, CMO Lindsay J. Radkoski bought 5,050 shares of the firm's stock in a transaction that occurred on Tuesday, June 3rd. The stock was acquired at an average cost of $11.68 per share, with a total value of $58,984.00. Following the completion of the purchase, the chief marketing officer owned 28,956 shares of the company's stock, valued at $338,206.08. This represents a 21.12% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 17.00% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of WEN. Colonial Trust Co SC acquired a new stake in Wendy's in the 4th quarter valued at about $31,000. Farther Finance Advisors LLC boosted its stake in shares of Wendy's by 1,111.9% during the 1st quarter. Farther Finance Advisors LLC now owns 2,133 shares of the restaurant operator's stock worth $31,000 after acquiring an additional 1,957 shares during the period. Caitong International Asset Management Co. Ltd raised its stake in Wendy's by 7,180.9% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 3,422 shares of the restaurant operator's stock valued at $50,000 after acquiring an additional 3,375 shares during the period. Signaturefd LLC lifted its holdings in Wendy's by 25.2% during the 2nd quarter. Signaturefd LLC now owns 5,336 shares of the restaurant operator's stock valued at $61,000 after purchasing an additional 1,074 shares during the last quarter. Finally, GAMMA Investing LLC boosted its position in Wendy's by 91.0% during the first quarter. GAMMA Investing LLC now owns 4,266 shares of the restaurant operator's stock worth $62,000 after purchasing an additional 2,033 shares during the period. Institutional investors own 85.96% of the company's stock.

Wendy's Company Profile

The Wendy's Co engages in operating, developing, and franchising a system of quick-service restaurants. It operates through the following segments: Wendy's U.S., Wendy's International, and Global Real Estate and Development. The Wendy's U.S. segment includes the operation and franchising of Wendy's restaurants in the U.S.

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