Wendy's (NASDAQ:WEN) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Wendy’s from sell to hold, though the broader analyst view remains cautious with a consensus rating of Reduce and an average price target of $8.56.
• Wendy’s most recent quarterly results showed EPS of $0.12, beating expectations, but revenue of $432.3 million fell short of analyst estimates. The company also guided FY 2026 EPS to 0.560-0.600.
• Investor sentiment is being shaped by both take-private speculation tied to Nelson Peltz’s Trian Fund and ongoing restaurant closures, which suggest possible upside from a deal but also continued pressure on the U.S. business.

Wendy's (NASDAQ:WEN - Get Free Report) was upgraded by Wall Street Zen from a "sell" rating to a "hold" rating in a note issued to investors on Saturday.

A number of other brokerages have also recently commented on WEN. Weiss Ratings reiterated a "sell (d+)" rating on shares of Wendy's in a research report on Monday, April 20th. The Goldman Sachs Group decreased their target price on shares of Wendy's from $8.00 to $7.00 and set a "sell" rating on the stock in a research report on Tuesday, February 17th. BMO Capital Markets decreased their target price on shares of Wendy's from $9.00 to $8.00 and set a "market perform" rating on the stock in a research report on Monday. Morgan Stanley reiterated an "underweight" rating and issued a $7.00 target price on shares of Wendy's in a research report on Monday, February 16th. Finally, Truist Financial decreased their target price on shares of Wendy's from $11.00 to $10.00 and set a "buy" rating on the stock in a research report on Tuesday, February 17th. Five investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and six have assigned a Sell rating to the stock. According to data from MarketBeat, Wendy's currently has a consensus rating of "Reduce" and an average target price of $8.56.

Wendy's Stock Performance

Wendy's stock opened at $8.02 on Friday. The firm's fifty day moving average price is $7.07 and its 200-day moving average price is $7.82. The company has a debt-to-equity ratio of 29.25, a quick ratio of 1.81 and a current ratio of 1.83. The stock has a market cap of $1.53 billion, a P/E ratio of 10.28, a price-to-earnings-growth ratio of 0.59 and a beta of 0.35. Wendy's has a fifty-two week low of $6.37 and a fifty-two week high of $12.51.

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, beating the consensus estimate of $0.10 by $0.02. The firm had revenue of $432.30 million for the quarter, compared to analysts' expectations of $518.03 million. Wendy's had a net margin of 6.77% and a return on equity of 136.46%. The business's quarterly revenue was up 3.3% on a year-over-year basis. During the same quarter last year, the company posted $0.20 EPS. Wendy's has set its FY 2026 guidance at 0.560-0.600 EPS. On average, equities research analysts expect that Wendy's will post 0.58 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Wendy's

Hedge funds have recently modified their holdings of the company. Alps Advisors Inc. increased its position in shares of Wendy's by 71.7% in the third quarter. Alps Advisors Inc. now owns 634,304 shares of the restaurant operator's stock valued at $5,810,000 after acquiring an additional 264,905 shares during the period. Quinn Opportunity Partners LLC boosted its stake in shares of Wendy's by 382.8% during the 3rd quarter. Quinn Opportunity Partners LLC now owns 1,216,811 shares of the restaurant operator's stock valued at $11,146,000 after purchasing an additional 964,771 shares in the last quarter. Public Sector Pension Investment Board bought a new stake in shares of Wendy's during the 3rd quarter valued at about $5,651,000. Ruffer LLP bought a new stake in shares of Wendy's during the 4th quarter valued at about $3,194,000. Finally, Principal Financial Group Inc. boosted its stake in shares of Wendy's by 107.3% during the 3rd quarter. Principal Financial Group Inc. now owns 759,620 shares of the restaurant operator's stock valued at $6,958,000 after purchasing an additional 393,105 shares in the last quarter. Hedge funds and other institutional investors own 85.96% of the company's stock.

Wendy's News Roundup

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

• Positive Sentiment: Wendy’s stock rose on renewed reports that Nelson Peltz’s Trian Fund may be exploring a take-private deal, which could unlock a premium for shareholders if a transaction materializes. Wendy's Take Private Talks Put Valuation And Deal Terms In Focus
• Positive Sentiment: Argus upgraded Wendy’s to Buy, adding analyst support for the stock amid expectations that valuation remains attractive relative to potential upside. Wendy's NASDAQ: WEN Upgraded to Buy at Argus
• Positive Sentiment: Wendy’s is pushing international expansion, including an agreement that could bring up to 1,000 restaurants to China over the next decade, which investors may view as a long-term growth driver. Will a Strategic Pivot to China Save Struggling Wendy's?
• Positive Sentiment: Wendy’s Canada announced fresh menu additions and a summer lineup, which supports brand momentum and international sales growth. Wendy's Canada Brings Fresh Flavours to Menus Nationwide with New Strawberry Salad, Watermelon Lemonade and More
• Neutral Sentiment: Wendy’s is rolling out a new blue global restaurant design, a brand-refresh move that may help differentiation but is not likely to move earnings near term. Wendy's new blue design is rolling out globally
• Negative Sentiment: Several articles highlighted additional Wendy’s restaurant closures, including in Michigan and other hard-hit states, reinforcing concerns that the company is downsizing its U.S. footprint. Pair of Flint-area Wendy’s close as fast food chain downsizes
• Negative Sentiment: Reports that Wendy’s has closed roughly 200 restaurants over recent months may weigh on sentiment by signaling softness in parts of the U.S. business. Wendy’s has closed 200 restaurants: Here are the hardest hit states

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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