Zacks Research Has Bearish Estimate for Wendy's Q3 Earnings

Key Points

• Zacks Research lowered Wendy’s Q3 2026 EPS estimate to $0.12 from $0.15, signaling weaker expected profitability. Full-year forecasts were also reduced for fiscal 2026–2028.
• Wendy’s most recently reported $0.18 EPS and $570.6 million in revenue, exceeding analyst estimates, though EPS declined from $0.29 a year earlier while revenue rose 1.8%.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and a $7.76 target price; shares recently opened at $9.01. The company declared a quarterly dividend of $0.07, implying a 3.1% yield.

The Wendy's Company (NASDAQ:WEN - Free Report) - Equities researchers at Zacks Research reduced their Q3 2026 earnings per share estimates for Wendy's in a note issued to investors on Friday, August 21st. Zacks Research analyst Team now expects that the restaurant operator will earn $0.12 per share for the quarter, down from their previous forecast of $0.15. The consensus estimate for Wendy's' current full-year earnings is $0.52 per share. Zacks Research also issued estimates for Wendy's' Q4 2026 earnings at $0.11 EPS, FY2026 earnings at $0.53 EPS, Q2 2027 earnings at $0.15 EPS, Q4 2027 earnings at $0.14 EPS, FY2027 earnings at $0.54 EPS, Q1 2028 earnings at $0.12 EPS, Q2 2028 earnings at $0.16 EPS and FY2028 earnings at $0.57 EPS.

Wendy's (NASDAQ:WEN - Get Free Report) last issued its earnings results on Friday, August 7th. The restaurant operator reported $0.18 EPS for the quarter, topping the consensus estimate of $0.16 by $0.02. Wendy's had a return on equity of 115.31% and a net margin of 5.72%.The company had revenue of $570.57 million during the quarter, compared to the consensus estimate of $557.13 million. During the same period in the previous year, the company posted $0.29 EPS. The firm's revenue for the quarter was up 1.8% compared to the same quarter last year.

WEN has been the subject of a number of other research reports. Argus upgraded shares of Wendy's from a "hold" rating to a "buy" rating and set a $12.00 target price for the company in a research note on Wednesday, May 13th. BMO Capital Markets reiterated a "market perform" rating on shares of Wendy's in a research note on Monday, August 10th. Weiss Ratings restated a "sell (d+)" rating on shares of Wendy's in a research report on Friday, July 17th. Stephens restated an "equal weight" rating and set a $8.00 price objective on shares of Wendy's in a report on Tuesday, June 23rd. Finally, Citigroup upped their target price on Wendy's from $7.25 to $8.00 and gave the company a "neutral" rating in a research report on Monday, August 10th. Two research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and six have assigned a Sell rating to the company. Based on data from MarketBeat, Wendy's currently has a consensus rating of "Reduce" and a consensus target price of $7.76.

Wendy's Stock Performance

WEN stock opened at $9.01 on Monday. The company has a debt-to-equity ratio of 27.95, a current ratio of 1.90 and a quick ratio of 1.88. The company has a fifty day moving average price of $7.72 and a two-hundred day moving average price of $7.43. Wendy's has a one year low of $6.07 and a one year high of $10.72. The stock has a market cap of $1.72 billion, a price-to-earnings ratio of 13.65, a price-to-earnings-growth ratio of 0.72 and a beta of 0.37.

Wendy's Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be paid a $0.07 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $0.28 annualized dividend and a dividend yield of 3.1%. Wendy's's dividend payout ratio is 84.85%.

Hedge Funds Weigh In On Wendy's

Hedge funds have recently bought and sold shares of the business. Global Retirement Partners LLC acquired a new position in shares of Wendy's during the 2nd quarter worth approximately $27,000. Hilton Head Capital Partners LLC acquired a new stake in shares of Wendy's in the fourth quarter valued at approximately $30,000. Cassaday & Co Wealth Management LLC acquired a new stake in shares of Wendy's in the first quarter valued at approximately $30,000. Fifth Third Bancorp boosted its stake in shares of 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. bought a new stake in shares of Wendy's in the first quarter valued at approximately $32,000. 85.96% of the stock is owned by institutional investors.

Trending Headlines about Wendy's

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

• Positive Sentiment: A Wendy’s employee reportedly reached Yale after receiving financial support from company bosses, providing favorable publicity for the brand and its workplace culture, although the story is unlikely to materially affect WEN’s valuation. Wendy’s worker heads to Yale after his bosses paid his way through college
• Neutral Sentiment: Coverage of Wendy Williams’ public appearances and Wendy’s restaurant design history is unrelated to The Wendy’s Company and should have no meaningful impact on WEN shares. Wendy Williams pleads for freedom in rare public sighting Wendy’s iconic 80s sunrooms
• Negative Sentiment: Zacks Research reduced its EPS forecasts across several periods, including fiscal 2026 earnings to $0.53 from $0.57, fiscal 2027 earnings to $0.54 from $0.59, and fiscal 2028 earnings to $0.57 from $0.68. The revisions signal weaker expected profitability and could pressure investor sentiment. Zacks Research earnings estimates for Wendy’s
• Negative Sentiment: A Chicago woman alleges that a Wendy’s cheeseburger caused a serious foodborne illness requiring hospitalization and nearly $93,000 in medical bills. The lawsuit remains an allegation, but it creates potential legal, reputational and food-safety risks for WEN. Woman alleges Wendy’s meal caused foodborne illness

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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