Wendy's (NASDAQ:WEN) Updates FY 2026 Earnings Guidance

Key Points

• Wendy's set FY2026 EPS guidance at $0.560–$0.600, essentially in line with the consensus of $0.570 and analyst forecasts of $0.57.
• Q1 results were mixed: the company beat EPS at $0.12 vs. $0.10 expected but missed revenue at $432.3M vs. ~ $518M, and reported global systemwide sales down 5.5% with plans to close hundreds of U.S. restaurants, underscoring turnaround risks.
• Wendy's recently paid a $0.14 quarterly dividend (annualized $0.56) yielding about 7.9% with a ~65.9% payout ratio, while the stock trades near $7 and carries a MarketBeat consensus price target of $8.46 and an average rating of "Reduce."

Wendy's (NASDAQ:WEN - Get Free Report) issued an update on its FY 2026 earnings guidance on Friday morning. The company provided EPS guidance of 0.560-0.600 for the period, compared to the consensus EPS estimate of 0.570. The company issued revenue guidance of -.

Wendy's Trading Up 1.4%

Shares of WEN stock traded up $0.10 on Friday, hitting $7.05. 12,940,082 shares of the company's stock traded hands, compared to its average volume of 8,492,569. The company has a debt-to-equity ratio of 28.77, a quick ratio of 1.74 and a current ratio of 1.76. Wendy's has a one year low of $6.37 and a one year high of $12.52. The company's fifty day simple moving average is $7.05 and its 200 day simple moving average is $7.87. The stock has a market capitalization of $1.34 billion, a price-to-earnings ratio of 8.32, a P/E/G ratio of 1.89 and a beta of 0.35.

Wendy's (NASDAQ:WEN - Get Free Report) last released its earnings results on Friday, May 8th. The restaurant operator reported $0.12 EPS for the quarter, beating the consensus estimate of $0.10 by $0.02. Wendy's had a net margin of 7.58% and a return on equity of 145.93%. The company had revenue of $432.30 million for the quarter, compared to analyst estimates of $518.03 million. During the same quarter last year, the firm earned $0.20 EPS. The firm's quarterly revenue was up 3.3% compared to the same quarter last year. Wendy's has set its FY 2026 guidance at 0.560-0.600 EPS. Equities analysts forecast that Wendy's will post 0.57 EPS for the current year.

Wendy's Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, March 16th. Shareholders of record on Monday, March 2nd were given a dividend of $0.14 per share. The ex-dividend date of this dividend was Monday, March 2nd. This represents a $0.56 annualized dividend and a yield of 7.9%. Wendy's's dividend payout ratio is presently 65.88%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on WEN shares. Mizuho set a $6.00 target price on shares of Wendy's in a research report on Friday, May 1st. Argus upgraded shares of Wendy's to a "hold" rating in a research note on Wednesday, January 21st. Wall Street Zen lowered shares of Wendy's from a "hold" rating to a "sell" rating in a research note on Saturday, February 21st. Deutsche Bank Aktiengesellschaft set a $8.00 price objective on shares of Wendy's in a research note on Tuesday, February 17th. Finally, Royal Bank Of Canada reduced their price objective on shares of Wendy's from $8.50 to $8.00 and set a "sector perform" rating for the company in a research note on Tuesday, February 17th. Four research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and five have given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Reduce" and a consensus price target of $8.46.

Key Stories Impacting Wendy's

Here are the key news stories impacting Wendy's this week:

• Positive Sentiment: Q1 EPS beat consensus — Wendy's reported $0.12 EPS vs. $0.10 expected, beating estimates and easing near-term profit concerns. Wendy's (WEN) Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: U.S. sales momentum and turnaround messaging — management says U.S. restaurants are returning to sales growth as turnaround initiatives (menu, promotions, digital) take hold. Wendy's Posts Higher Sales Amid U.S. Turnaround Efforts
• Positive Sentiment: Large China expansion deal — Wendy's signed a franchise agreement to develop up to 1,000 restaurants in China, offering a material long-term growth avenue. THE WENDY'S COMPANY REPORTS FIRST QUARTER 2026 RESULTS
• Neutral Sentiment: Company reaffirmed full-year 2026 outlook and provided slides/call materials — gives investors guidance continuity but limited new upside. Listen to Conference Call / View Materials
• Neutral Sentiment: Macro/jobs data mixed impact — stronger-than-expected BLS jobs (+115K) can boost restaurant traffic but also implies tighter labor markets and wage pressure. BLS Jobs: +115K, Double Expectations
• Negative Sentiment: Revenue missed expectations — Q1 revenue was $432.3M vs. consensus ~$518M, signaling weaker top-line performance despite the EPS beat. Wendy's Q1 Results (MarketBeat)
• Negative Sentiment: Store closures and systemwide sales decline — company reported global systemwide sales down 5.5% and announced plans to close hundreds of U.S. restaurants as part of the turnaround, which raises questions about near-term sales footprint and franchise stability. Q1 Results & Closures Wendy’s to close 300 US restaurants
• Negative Sentiment: Margin pressure from input and labor costs — analysts and previews called out beef and labor inflation that could strain margins even as sales improve. Wendy's Gears Up for Q1 Earnings

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Gen Wealth Partners Inc bought a new position in Wendy's during the fourth quarter valued at $33,000. Align Financial LLC bought a new position in Wendy's during the fourth quarter valued at $52,000. Tower Research Capital LLC TRC increased its position in Wendy's by 53.1% during the second quarter. Tower Research Capital LLC TRC now owns 8,629 shares of the restaurant operator's stock valued at $99,000 after acquiring an additional 2,994 shares during the last quarter. BTG Pactual Asset Management US LLC purchased a new stake in shares of Wendy's during the second quarter valued at $115,000. Finally, Sargent Investment Group LLC purchased a new stake in shares of Wendy's during the fourth quarter valued at $86,000. Institutional investors own 85.96% of the company's stock.

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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