Wendy's (NASDAQ:WEN) Releases Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• Wendy's reported earnings per share (EPS) of $0.29 for the quarter, exceeding analyst expectations of $0.25 and showing growth from the prior year's $0.27 EPS.
• The company announced a quarterly dividend of $0.14 per share, reflecting an annualized dividend of $0.56 and a dividend yield of 5.6%.
• Wendy's updated its fiscal year 2025 EPS guidance to between $0.820 and $0.89.

Wendy's (NASDAQ:WEN - Get Free Report) announced its quarterly earnings data on Friday. The restaurant operator reported $0.29 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.25 by $0.04, Zacks reports. The company had revenue of $560.93 million for the quarter, compared to analysts' expectations of $558.95 million. Wendy's had a net margin of 8.63% and a return on equity of 103.07%. The business's revenue was down 1.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.27 EPS. Wendy's updated its FY 2025 guidance to 0.820-0.89 EPS.

Wendy's Stock Down 0.2%

NASDAQ WEN traded down $0.03 during trading on Tuesday, reaching $10.28. The company's stock had a trading volume of 1,329,204 shares, compared to its average volume of 5,946,119. The company has a current ratio of 1.45, a quick ratio of 1.43 and a debt-to-equity ratio of 28.74. The stock has a market capitalization of $1.97 billion, a PE ratio of 10.72, a PEG ratio of 2.05 and a beta of 0.31. The business has a 50-day moving average price of $11.05 and a 200-day moving average price of $12.79. Wendy's has a 1-year low of $9.74 and a 1-year high of $20.60.

Wendy's Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd will be paid a $0.14 dividend. The ex-dividend date is Tuesday, September 2nd. This represents a $0.56 dividend on an annualized basis and a yield of 5.5%. Wendy's's payout ratio is 58.33%.

Insider Transactions at Wendy's

In other Wendy's news, CMO Lindsay J. Radkoski bought 5,050 shares of Wendy's stock in a transaction on Tuesday, June 3rd. The stock was purchased at an average cost of $11.68 per share, for a total transaction of $58,984.00. Following the completion of the purchase, the chief marketing officer directly owned 28,956 shares of the company's stock, valued at $338,206.08. The trade was a 21.12% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 17.00% of the stock is owned by company insiders.

Institutional Trading of Wendy's

An institutional investor recently bought a new position in Wendy's stock. United Services Automobile Association bought a new stake in The Wendy's Company (NASDAQ:WEN - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 11,021 shares of the restaurant operator's stock, valued at approximately $161,000. 85.96% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on WEN. BMO Capital Markets lowered their price objective on shares of Wendy's from $15.00 to $12.00 and set a "market perform" rating on the stock in a research note on Friday. Guggenheim cut shares of Wendy's from a "buy" rating to a "neutral" rating in a research note on Wednesday, May 14th. Wall Street Zen raised shares of Wendy's from a "sell" rating to a "hold" rating in a research note on Saturday, July 12th. Stifel Nicolaus lowered their price objective on shares of Wendy's from $16.00 to $14.00 and set a "hold" rating on the stock in a research note on Tuesday, April 15th. Finally, Morgan Stanley reaffirmed an "underweight" rating on shares of Wendy's in a research note on Friday. Two analysts have rated the stock with a sell rating, thirteen have issued a hold rating, six have issued a buy rating and three have issued a strong buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $13.87.

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.