The Wendy's Company (NASDAQ:WEN) Receives Average Rating of "Reduce" from Brokerages

Shares of The Wendy's Company (NASDAQ:WEN - Get Free Report) have been assigned a consensus recommendation of "Reduce" from the twenty-three ratings firms that are covering the company, Marketbeat Ratings reports. Six research analysts have rated the stock with a sell recommendation, twelve have assigned a hold recommendation and five have given a buy recommendation to the company. The average 12-month target price among analysts that have covered the stock in the last year is $8.5568.

WEN has been the subject of a number of research analyst reports. Evercore set a $8.00 price target on shares of Wendy's in a research report on Tuesday, February 17th. Argus raised shares of Wendy's from a "hold" rating to a "buy" rating and set a $12.00 price objective on the stock in a research report on Wednesday. Wall Street Zen raised shares of Wendy's from a "sell" rating to a "hold" rating in a research report on Saturday. TD Cowen reaffirmed a "hold" rating and set a $6.00 price objective on shares of Wendy's in a research report on Tuesday. Finally, Deutsche Bank Aktiengesellschaft set a $8.00 price objective on shares of Wendy's in a research report on Tuesday, February 17th.

Wendy's Stock Performance

Shares of WEN opened at $8.02 on Friday. The company has a 50-day moving average of $7.07 and a two-hundred day moving average of $7.82. The company has a debt-to-equity ratio of 29.25, a current ratio of 1.83 and a quick ratio of 1.81. The stock has a market cap of $1.53 billion, a price-to-earnings ratio of 10.28, a PEG ratio of 0.59 and a beta of 0.35. Wendy's has a one year low of $6.37 and a one year high of $12.51.

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

Wendy's Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be issued a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 7.0%. The ex-dividend date is Monday, June 1st. Wendy's's dividend payout ratio (DPR) is 71.79%.

Wendy's News Summary

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

• Positive Sentiment: Wendy’s stock rose on renewed reports that Nelson Peltz’s Trian Fund may be exploring a take-private deal, which could unlock a premium for shareholders if a transaction materializes. Wendy's Take Private Talks Put Valuation And Deal Terms In Focus
• Positive Sentiment: Argus upgraded Wendy’s to Buy, adding analyst support for the stock amid expectations that valuation remains attractive relative to potential upside. Wendy's NASDAQ: WEN Upgraded to Buy at Argus
• Positive Sentiment: Wendy’s is pushing international expansion, including an agreement that could bring up to 1,000 restaurants to China over the next decade, which investors may view as a long-term growth driver. Will a Strategic Pivot to China Save Struggling Wendy's?
• Positive Sentiment: Wendy’s Canada announced fresh menu additions and a summer lineup, which supports brand momentum and international sales growth. Wendy's Canada Brings Fresh Flavours to Menus Nationwide with New Strawberry Salad, Watermelon Lemonade and More
• Neutral Sentiment: Wendy’s is rolling out a new blue global restaurant design, a brand-refresh move that may help differentiation but is not likely to move earnings near term. Wendy's new blue design is rolling out globally
• Negative Sentiment: Several articles highlighted additional Wendy’s restaurant closures, including in Michigan and other hard-hit states, reinforcing concerns that the company is downsizing its U.S. footprint. Pair of Flint-area Wendy’s close as fast food chain downsizes
• Negative Sentiment: Reports that Wendy’s has closed roughly 200 restaurants over recent months may weigh on sentiment by signaling softness in parts of the U.S. business. Wendy’s has closed 200 restaurants: Here are the hardest hit states

Hedge Funds Weigh In On Wendy's

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. AQR Capital Management LLC grew its holdings in Wendy's by 30.1% during the second quarter. AQR Capital Management LLC now owns 13,843,438 shares of the restaurant operator's stock valued at $158,092,000 after purchasing an additional 3,205,269 shares during the last quarter. Charles Schwab Investment Management Inc. grew its stake in shares of Wendy's by 3.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 7,091,847 shares of the restaurant operator's stock worth $59,075,000 after acquiring an additional 227,023 shares during the last quarter. Morgan Stanley grew its stake in shares of Wendy's by 5.8% in the fourth quarter. Morgan Stanley now owns 6,549,066 shares of the restaurant operator's stock worth $54,554,000 after acquiring an additional 357,814 shares during the last quarter. State Street Corp grew its stake in shares of Wendy's by 1.9% in the fourth quarter. State Street Corp now owns 5,446,335 shares of the restaurant operator's stock worth $45,368,000 after acquiring an additional 102,084 shares during the last quarter. Finally, Wells Fargo & Company MN grew its stake in shares of Wendy's by 258.6% in the fourth quarter. Wells Fargo & Company MN now owns 4,224,648 shares of the restaurant operator's stock worth $35,191,000 after acquiring an additional 3,046,517 shares during the last quarter. Institutional investors and hedge funds own 85.96% of the company's stock.

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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