Wendy's (NASDAQ:WEN) Earns Sell (D+) Rating from Weiss Ratings

Key Points

• Wendy's stock has received a reaffirmed "sell (D+)" rating from Weiss Ratings and other analysts, indicating a cautious outlook on the company's performance.
• The company's recent quarterly earnings showed revenue of $560.93 million and a net margin of 8.63%, despite a year-over-year revenue decrease of 1.7%.
• Wendy's current stock price is $8.97, with a market capitalization of $1.71 billion and an average price target of $12.66 based on analyst ratings.

Wendy's (NASDAQ:WEN - Get Free Report)'s stock had its "sell (d+)" rating reaffirmed by investment analysts at Weiss Ratings in a research report issued on Wednesday,Weiss Ratings reports.

Several other analysts have also recently commented on WEN. Northcoast Research cut Wendy's from a "neutral" rating to a "sell" rating and set a $7.00 target price for the company. in a research report on Thursday, September 25th. Wall Street Zen raised Wendy's from a "sell" rating to a "hold" rating in a research report on Saturday, July 12th. TD Cowen reduced their price objective on Wendy's from $13.00 to $11.00 and set a "hold" rating for the company in a research report on Friday, August 8th. Morgan Stanley reissued an "underweight" rating on shares of Wendy's in a research report on Friday, August 8th. Finally, Bank of America cut their target price on Wendy's from $13.00 to $11.00 and set a "buy" rating on the stock in a report on Friday, July 18th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, thirteen have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $12.66.

Wendy's Price Performance

Shares of WEN traded down $0.15 during trading hours on Wednesday, hitting $8.97. 4,184,588 shares of the company were exchanged, compared to its average volume of 6,102,141. The company has a market capitalization of $1.71 billion, a PE ratio of 9.34, a PEG ratio of 1.76 and a beta of 0.38. The company has a debt-to-equity ratio of 28.74, a current ratio of 1.45 and a quick ratio of 1.43. The firm has a fifty day simple moving average of $9.92 and a 200-day simple moving average of $11.34. Wendy's has a one year low of $8.95 and a one year high of $20.60.

Wendy's (NASDAQ:WEN - Get Free Report) last released its quarterly earnings data on Friday, August 8th. The restaurant operator reported $0.29 earnings per share for the quarter, topping the consensus estimate of $0.25 by $0.04. The business had revenue of $560.93 million during the quarter, compared to analyst estimates of $558.95 million. Wendy's had a return on equity of 103.07% and a net margin of 8.63%.The company's revenue was down 1.7% compared to the same quarter last year. During the same period last year, the company posted $0.27 EPS. Wendy's has set its FY 2025 guidance at 0.820-0.89 EPS. As a group, sell-side analysts predict that Wendy's will post 0.99 earnings per share for the current year.

Institutional Investors Weigh In On Wendy's

A number of institutional investors have recently added to or reduced their stakes in WEN. Elevation Point Wealth Partners LLC acquired a new stake in Wendy's during the second quarter worth about $25,000. Investors Research Corp acquired a new stake in Wendy's during the third quarter valued at approximately $27,000. Farther Finance Advisors LLC boosted its holdings in Wendy's by 1,111.9% during the first quarter. Farther Finance Advisors LLC now owns 2,133 shares of the restaurant operator's stock valued at $31,000 after purchasing an additional 1,957 shares in the last quarter. Steward Partners Investment Advisory LLC boosted its holdings in Wendy's by 35.0% during the second quarter. Steward Partners Investment Advisory LLC now owns 4,017 shares of the restaurant operator's stock valued at $46,000 after purchasing an additional 1,041 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd boosted its holdings in Wendy's by 7,180.9% during the first quarter. Caitong International Asset Management Co. Ltd now owns 3,422 shares of the restaurant operator's stock valued at $50,000 after purchasing an additional 3,375 shares in the last quarter. 85.96% of the stock is owned by institutional investors and hedge funds.

About Wendy's

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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