Zacks Research Has Bearish Outlook for Wendy's Q2 Earnings

Key Points

• Zacks Research turned more cautious on Wendy’s, cutting its Q2 2026 EPS estimate to $0.17 from $0.18 and trimming several later-period forecasts as well.
• Wendy’s most recent earnings beat profit expectations, posting $0.12 EPS vs. $0.10 expected, but revenue came in below estimates at $432.3 million versus $518.03 million projected.
• Analyst sentiment remains weak overall: Wendy’s has a consensus rating of “Reduce” and an average price target of $8.56, despite a few recent upgrades.

The Wendy's Company (NASDAQ:WEN - Free Report) - Research analysts at Zacks Research cut their Q2 2026 earnings per share estimates for Wendy's in a research report issued to clients and investors on Friday, May 22nd. Zacks Research analyst Team now expects that the restaurant operator will earn $0.17 per share for the quarter, down from their prior forecast of $0.18. The consensus estimate for Wendy's' current full-year earnings is $0.58 per share. Zacks Research also issued estimates for Wendy's' Q4 2026 earnings at $0.13 EPS, FY2026 earnings at $0.57 EPS, Q1 2027 earnings at $0.11 EPS, Q2 2027 earnings at $0.18 EPS, Q3 2027 earnings at $0.15 EPS, Q4 2027 earnings at $0.15 EPS and Q1 2028 earnings at $0.14 EPS.

Wendy's (NASDAQ:WEN - Get Free Report) last issued its earnings results on Friday, May 8th. The restaurant operator reported $0.12 earnings per share for the quarter, topping analysts' consensus estimates of $0.10 by $0.02. The company had revenue of $432.30 million for the quarter, compared to analyst estimates of $518.03 million. Wendy's had a return on equity of 136.46% and a net margin of 6.77%.Wendy's's revenue for the quarter was up 3.3% on a year-over-year basis. During the same period in the prior year, the firm earned $0.20 earnings per share. Wendy's has set its FY 2026 guidance at 0.560-0.600 EPS.

A number of other equities research analysts have also commented on the company. Argus raised Wendy's from a "hold" rating to a "buy" rating and set a $12.00 price target for the company in a research report on Wednesday, May 13th. Barclays lowered their price target on Wendy's from $9.00 to $8.00 and set an "equal weight" rating for the company in a research report on Tuesday, February 17th. Mizuho set a $6.00 price target on Wendy's in a research report on Friday, May 1st. JPMorgan Chase & Co. reissued an "underweight" rating and issued a $6.00 price target (down from $7.00) on shares of Wendy's in a research report on Monday, May 11th. Finally, Royal Bank Of Canada lowered their price target on Wendy's from $8.50 to $8.00 and set a "sector perform" rating for the company in a research report on Tuesday, February 17th. Five research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and six have given a Sell rating to the stock. Based on data from MarketBeat.com, Wendy's has a consensus rating of "Reduce" and an average target price of $8.56.

Wendy's Stock Performance

NASDAQ WEN opened at $7.81 on Monday. The firm has a market capitalization of $1.49 billion, a P/E ratio of 10.01, a PEG ratio of 0.56 and a beta of 0.35. The business has a fifty day simple moving average of $7.14 and a 200 day simple moving average of $7.79. Wendy's has a 12 month low of $6.37 and a 12 month high of $12.51. The company has a current ratio of 1.83, a quick ratio of 1.81 and a debt-to-equity ratio of 29.25.

Wendy's Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be paid a dividend of $0.14 per share. The ex-dividend date is Monday, June 1st. This represents a $0.56 annualized dividend and a dividend yield of 7.2%. Wendy's's dividend payout ratio is presently 71.79%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. M&T Bank Corp grew its position in Wendy's by 8.4% during the 2nd quarter. M&T Bank Corp now owns 16,987 shares of the restaurant operator's stock worth $194,000 after acquiring an additional 1,310 shares during the last quarter. State of Alaska Department of Revenue grew its position in Wendy's by 1.5% during the 4th quarter. State of Alaska Department of Revenue now owns 91,885 shares of the restaurant operator's stock worth $765,000 after acquiring an additional 1,321 shares during the last quarter. Brown Financial Advisors grew its position in Wendy's by 4.7% during the 2nd quarter. Brown Financial Advisors now owns 29,908 shares of the restaurant operator's stock worth $342,000 after acquiring an additional 1,339 shares during the last quarter. Bank of Nova Scotia grew its position in Wendy's by 3.4% during the 3rd quarter. Bank of Nova Scotia now owns 40,993 shares of the restaurant operator's stock worth $375,000 after acquiring an additional 1,343 shares during the last quarter. Finally, Transcend Capital Advisors LLC grew its position in Wendy's by 10.3% during the 4th quarter. Transcend Capital Advisors LLC now owns 14,449 shares of the restaurant operator's stock worth $120,000 after acquiring an additional 1,350 shares during the last quarter. Institutional investors own 85.96% of the company's stock.

Trending Headlines about Wendy's

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

• Negative Sentiment: Zacks Research cut earnings estimates for Wendy’s (WEN) across multiple future periods, including lower forecasts for FY2026 and several 2027/2028 quarters. Lower profit expectations can pressure the stock because they suggest slower earnings growth ahead.
• Negative Sentiment: A separate headline raised concerns about Wendy’s closing hundreds of restaurants across the U.S. in 2026, which could signal weaker unit economics or a restructuring effort, both of which can weigh on investor sentiment. Article Title
• Neutral Sentiment: One consumer-focused article about Wendy’s Vanilla Frosty disappearing from the menu is unlikely to move the stock much on its own, but it highlights ongoing menu rotation and product-availability chatter around the brand. Article Title
• Neutral Sentiment: A market recap noted that Wendy’s shares traded up alongside Cracker Barrel, but it did not point to a specific company catalyst. Article Title

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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