Wendy's (NASDAQ:WEN) Reaches New 1-Year Low - Should You Sell?

Key Points

• Wendy's (NASDAQ:WEN) hit a new 52-week low of $9.74 during trading, reflecting ongoing market challenges.
• The company reported earnings per share (EPS) of $0.29 for the last quarter, exceeding analysts' expectations, but experienced a 1.7% decline in revenue year-over-year.
• Wendy's announced a $0.14 quarterly dividend with a yield of 5.7%, indicating a move to return value to shareholders despite fluctuating stock performance.

The Wendy's Company (NASDAQ:WEN - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $9.74 and last traded at $9.75, with a volume of 3160336 shares traded. The stock had previously closed at $9.92.

Analyst Ratings Changes

Several equities analysts have issued reports on WEN shares. Cowen reiterated a "hold" rating on shares of Wendy's in a research report on Friday, August 8th. JPMorgan Chase & Co. boosted their price target on Wendy's from $13.00 to $14.00 and gave the stock an "overweight" rating in a research note on Thursday, August 28th. Stifel Nicolaus set a $12.00 price target on Wendy's in a research note on Friday, August 15th. BMO Capital Markets reissued a "market perform" rating and set a $12.00 price target (down previously from $15.00) on shares of Wendy's in a research note on Friday, August 8th. Finally, Piper Sandler reissued an "overweight" rating and set a $13.00 price target on shares of Wendy's in a research note on Friday, August 8th. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $12.97.

Wendy's Trading 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 business has a 50 day moving average of $10.38 and a 200-day moving average of $11.98. The stock has a market cap of $1.84 billion, a PE ratio of 10.07, a price-to-earnings-growth ratio of 1.82 and a beta of 0.37.

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

Wendy's Announces Dividend

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

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Elevation Point Wealth Partners LLC purchased a new position in shares of Wendy's during the 2nd quarter worth $25,000. Farther Finance Advisors LLC increased its holdings in shares of Wendy's by 1,111.9% during the 1st quarter. Farther Finance Advisors LLC now owns 2,133 shares of the restaurant operator's stock worth $31,000 after buying an additional 1,957 shares during the last quarter. Steward Partners Investment Advisory LLC increased its holdings in shares of Wendy's by 35.0% during the 2nd quarter. Steward Partners Investment Advisory LLC now owns 4,017 shares of the restaurant operator's stock worth $46,000 after buying an additional 1,041 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its holdings in shares of Wendy's by 7,180.9% during the 1st quarter. Caitong International Asset Management Co. Ltd now owns 3,422 shares of the restaurant operator's stock worth $50,000 after buying an additional 3,375 shares during the last quarter. Finally, Signaturefd LLC increased its holdings in shares of Wendy's by 25.2% during the 2nd quarter. Signaturefd LLC now owns 5,336 shares of the restaurant operator's stock worth $61,000 after buying an additional 1,074 shares during the last quarter. Hedge funds and other institutional investors own 85.96% of the company's stock.

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.