Wendy's (NASDAQ:WEN) Earns Underweight Rating from JPMorgan Chase & Co.

Key Points

• JPMorgan Chase & Co. reaffirmed an underweight rating on Wendy's and cut its price target to $6 from $7, implying about 17.8% downside from the prior close.
• Other analysts remain mixed: the stock now has a consensus rating of “Reduce” with an average price target of $8.42, based on four Buy, fourteen Hold, and six Sell ratings.
• Wendy's most recent quarter beat earnings expectations with EPS of $0.12 versus $0.10 expected, but revenue of $432.3 million came in below forecasts; the company also guided FY2026 EPS at 0.560-0.600.

Wendy's (NASDAQ:WEN - Get Free Report)'s stock had its "underweight" rating reissued by investment analysts at JPMorgan Chase & Co. in a note issued to investors on Monday,Benzinga reports. They currently have a $6.00 price objective on the restaurant operator's stock, down from their prior price objective of $7.00. JPMorgan Chase & Co.'s price objective points to a potential downside of 17.81% from the company's previous close.

Several other analysts have also weighed in on the stock. Deutsche Bank Aktiengesellschaft set a $8.00 price objective on shares of Wendy's in a report on Tuesday, February 17th. Stifel Nicolaus set a $6.00 price target on shares of Wendy's in a research note on Thursday, April 30th. Truist Financial decreased their price target on shares of Wendy's from $11.00 to $10.00 and set a "buy" rating on the stock in a research note on Tuesday, February 17th. Argus raised shares of Wendy's to a "hold" rating in a research note on Wednesday, January 21st. Finally, Weiss Ratings reissued a "sell (d+)" rating on shares of Wendy's in a research note on Monday, April 20th. Four equities research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and six have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and a consensus price target of $8.42.

Wendy's Stock Performance

NASDAQ WEN opened at $7.30 on Monday. The firm has a market cap of $1.39 billion, a price-to-earnings ratio of 9.36, a PEG ratio of 2.06 and a beta of 0.35. The company has a 50 day moving average of $7.05 and a 200-day moving average of $7.87. The company has a current ratio of 1.83, a quick ratio of 1.81 and a debt-to-equity ratio of 29.25. Wendy's has a 1-year low of $6.37 and a 1-year high of $12.52.

Wendy's (NASDAQ:WEN - Get Free Report) last posted its quarterly earnings data on Friday, May 8th. The restaurant operator reported $0.12 earnings per share for the quarter, topping the consensus estimate of $0.10 by $0.02. The company 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 company's revenue was up 3.3% on a year-over-year basis. During the same quarter last year, the business posted $0.20 earnings per share. Wendy's has set its FY 2026 guidance at 0.560-0.600 EPS. On average, equities analysts forecast that Wendy's will post 0.58 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Wendy's

Several large investors have recently bought and sold shares of WEN. Versant Capital Management Inc lifted its holdings in Wendy's by 19,693.8% in the third quarter. Versant Capital Management Inc now owns 3,167 shares of the restaurant operator's stock valued at $29,000 after buying an additional 3,151 shares during the period. Hilton Head Capital Partners LLC acquired a new position in Wendy's in the fourth quarter valued at approximately $30,000. Cassaday & Co Wealth Management LLC acquired a new position in Wendy's in the first quarter valued at approximately $30,000. Fifth Third Bancorp lifted its holdings in Wendy's by 161.0% in the fourth quarter. Fifth Third Bancorp now owns 3,829 shares of the restaurant operator's stock valued at $32,000 after buying an additional 2,362 shares during the period. Finally, SJS Investment Consulting Inc. acquired a new position in Wendy's in the first quarter valued at approximately $32,000. 85.96% of the stock is currently owned by institutional investors and hedge funds.

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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