The Wendy's Company (NASDAQ:WEN) to Issue Quarterly Dividend of $0.07

Key Points

• Wendy’s declared a quarterly dividend of $0.07 per share, payable September 15 to shareholders of record on September 1. The dividend implies an annualized payout of $0.28 and a yield of approximately 3.6%.
• The company reported quarterly EPS of $0.18, beating analysts’ $0.16 estimate, while revenue reached $570.57 million and rose 1.8% year over year.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating from MarketBeat, with an average price target of $8.04 versus a recent price of $7.69.

The Wendy's Company (NASDAQ:WEN - Get Free Report) announced a quarterly dividend on Friday, August 7th. Stockholders of record on Tuesday, September 1st will be given a dividend of 0.07 per share by the restaurant operator on Tuesday, September 15th. This represents a c) dividend on an annualized basis and a dividend yield of 3.6%. The ex-dividend date is Tuesday, September 1st.

Wendy's has raised its dividend payment by an average of 0.2%annually over the last three years. Wendy's has a dividend payout ratio of 53.3% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Wendy's to earn $0.62 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 90.3%.

Wendy's Price Performance

Shares of NASDAQ:WEN traded up $0.30 during trading on Friday, reaching $7.69. 18,259,977 shares of the company's stock traded hands, compared to its average volume of 12,332,418. The company has a quick ratio of 1.81, a current ratio of 1.83 and a debt-to-equity ratio of 29.25. Wendy's has a fifty-two week low of $6.07 and a fifty-two week high of $10.84. The company has a 50-day simple moving average of $7.41 and a 200-day simple moving average of $7.41. The firm has a market cap of $1.46 billion, a PE ratio of 9.86, a P/E/G ratio of 0.58 and a beta of 0.37.

Wendy's (NASDAQ:WEN - Get Free Report) last released its quarterly earnings results on Friday, August 7th. The restaurant operator reported $0.18 earnings per share for the quarter, topping analysts' consensus estimates of $0.16 by $0.02. The company had revenue of $570.57 million during the quarter, compared to analysts' expectations of $557.13 million. Wendy's had a return on equity of 136.46% and a net margin of 6.77%.Wendy's's quarterly revenue was up 1.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.29 EPS. As a group, analysts predict that Wendy's will post 0.57 earnings per share for the current year.

Analyst Ratings Changes

A number of analysts have recently commented on the company. Argus upgraded Wendy's from a "hold" rating to a "buy" rating and set a $12.00 price objective for the company in a research report on Wednesday, May 13th. Stephens reiterated an "equal weight" rating and set a $8.00 target price on shares of Wendy's in a research report on Tuesday, June 23rd. Wall Street Zen raised shares of Wendy's from a "sell" rating to a "hold" rating in a research note on Saturday, May 16th. Citigroup cut their price target on shares of Wendy's from $7.75 to $7.25 and set a "neutral" rating for the company in a report on Tuesday, July 28th. Finally, BMO Capital Markets restated a "market perform" rating on shares of Wendy's in a research report on Wednesday, June 10th. Three analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and six have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average price target of $8.04.

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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