Wendy's (NASDAQ:WEN) Reaches New 12-Month Low - Here's What Happened

Key Points

• Wendy's stock reached a new 52-week low, trading as low as $9.63, with several analysts adjusting their price targets downward in recent reports.
• The company recently announced a quarterly dividend of $0.14 per share, representing a yield of 5.8% and a payout ratio of 58.33%.
• Despite the current challenges, Wendy's reported earnings of $0.29 per share, exceeding analyst expectations, although quarterly revenue was down 1.7% compared to the previous year.

The Wendy's Company (NASDAQ:WEN - Get Free Report) reached a new 52-week low during trading on Tuesday . The stock traded as low as $9.63 and last traded at $9.67, with a volume of 5270018 shares trading hands. The stock had previously closed at $9.66.

Wall Street Analyst Weigh In

Several research firms have recently commented on WEN. Stifel Nicolaus set a $12.00 price target on shares of Wendy's in a research report on Friday, August 15th. Loop Capital reduced their price target on shares of Wendy's from $21.00 to $16.00 and set a "buy" rating for the company in a research report on Wednesday, July 16th. TD Cowen reduced their price target on shares of Wendy's from $13.00 to $11.00 and set a "hold" rating for the company in a research report on Friday, August 8th. UBS Group reaffirmed a "neutral" rating and set a $11.00 price target (down previously from $14.00) on shares of Wendy's in a research report on Wednesday, July 30th. Finally, BMO Capital Markets reaffirmed a "market perform" rating and set a $12.00 price target (down previously from $15.00) on shares of Wendy's in a research report on Friday, August 8th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $12.97.

Wendy's Stock Up 0.1%

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 $1.84 billion, a P/E ratio of 10.07, a P/E/G ratio of 1.82 and a beta of 0.37. The business has a 50-day moving average price of $10.38 and a 200 day moving average price of $11.98.

Wendy's (NASDAQ:WEN - Get Free Report) last posted its earnings results on Friday, August 8th. The restaurant operator reported $0.29 EPS for the quarter, beating analysts' consensus estimates of $0.25 by $0.04. The firm had revenue of $560.93 million during the quarter, compared to the consensus estimate of $558.95 million. Wendy's had a return on equity of 103.07% and a net margin of 8.63%.The company's quarterly revenue was down 1.7% compared to the same quarter last year. During the same period in the prior year, the company earned $0.27 EPS. Wendy's has set its FY 2025 guidance at 0.820-0.89 EPS. On average, equities analysts expect that The Wendy's Company will post 0.99 EPS for the current fiscal year.

Wendy's Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be issued a dividend of $0.14 per share. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $0.56 dividend on an annualized basis and a dividend yield of 5.8%. Wendy's's payout ratio is 58.33%.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Farther Finance Advisors LLC increased its position in shares of Wendy's by 1,111.9% in the first quarter. Farther Finance Advisors LLC now owns 2,133 shares of the restaurant operator's stock valued at $31,000 after buying an additional 1,957 shares in the last quarter. Elevation Point Wealth Partners LLC purchased a new stake in shares of Wendy's during the second quarter worth approximately $25,000. Caitong International Asset Management Co. Ltd increased its position in shares of 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 worth $50,000 after purchasing an additional 3,375 shares in the last quarter. Steward Partners Investment Advisory LLC increased its position in shares of 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 worth $46,000 after purchasing an additional 1,041 shares in the last quarter. Finally, Signaturefd LLC increased its position in shares of Wendy's by 27.4% during the first quarter. Signaturefd LLC now owns 4,262 shares of the restaurant operator's stock worth $62,000 after purchasing an additional 917 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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