Wendy’s (NASDAQ:WEN) Shares Gap Down – Here’s Why

The Wendy’s Company (NASDAQ:WEN)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $9.04, but opened at $7.87. Wendy’s shares last traded at $7.9560, with a volume of 5,331,764 shares changing hands.

More Wendy’s News

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

• Positive Sentiment: Wendy’s shares are seeing a rebound as unusually high short interest raises the possibility of a short squeeze if buying momentum continues. The recovery appears more technical than fundamental, however. Wendy’s Climbs 4%, McDonald’s Ticks Up: Is Short Interest Setting Up a Squeeze in the Burger Trade?
• Positive Sentiment: New CEO Bob Wright is acknowledging Wendy’s recent mistakes and is developing a turnaround strategy that borrows elements from Burger King and McDonald’s. Potential improvements to operations, marketing, and the customer experience could support the stock over the longer term if execution improves. Wendy’s Is Losing Ground. Its CEO’s Turnaround Plan Borrows From Burger King and McDonald’s
• Neutral Sentiment: Consumer coverage highlighting popular Wendy’s menu orders may help brand engagement but provides little information about near-term revenue, earnings, or valuation. 7 Best Orders at Wendy’s, According to Regulars
• Negative Sentiment: Reports that Trian is not preparing a take-private offer caused investors to unwind takeover-related positions. Analysts argue that the acquisition premium has effectively disappeared, leaving Wendy’s stock to trade on its underlying business performance and turnaround prospects. Wendy’s Shares Tumble on Report Trian No Longer Preparing Take-Private Bid

Analyst Ratings Changes

Several brokerages have issued reports on WEN. Citigroup increased their target price on shares of Wendy’s from $7.25 to $8.00 and gave the stock a “neutral” rating in a report on Monday, August 10th. UBS Group reaffirmed a “neutral” rating and issued a $8.00 price objective on shares of Wendy’s in a research report on Monday, August 10th. Weiss Ratings reissued a “sell (d+)” rating on shares of Wendy’s in a report on Friday, July 17th. Mizuho set a $6.00 price objective on shares of Wendy’s in a report on Friday, May 1st. Finally, BMO Capital Markets reiterated a “market perform” rating on shares of Wendy’s in a research note on Monday, August 10th. Two analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and six have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Reduce” and an average price target of $7.76.

Wendy’s Stock Performance

The company has a market capitalization of $1.58 billion, a PE ratio of 12.53, a PEG ratio of 0.65 and a beta of 0.37. The firm has a 50-day moving average of $7.89 and a two-hundred day moving average of $7.46. The company has a quick ratio of 1.88, a current ratio of 1.90 and a debt-to-equity ratio of 27.95.

Wendy’s (NASDAQ:WEN) last released its quarterly earnings data on Friday, August 7th. The restaurant operator reported $0.18 EPS for the quarter, topping the consensus estimate of $0.16 by $0.02. The business had revenue of $570.57 million for the quarter, compared to analyst estimates of $557.13 million. Wendy’s had a return on equity of 115.31% and a net margin of 5.72%.The business’s quarterly revenue was up 1.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.29 EPS. Research analysts anticipate that The Wendy’s Company will post 0.51 EPS for the current year.

Wendy’s Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be given a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a yield of 3.4%. The ex-dividend date is Tuesday, September 1st. Wendy’s’s dividend payout ratio (DPR) is currently 84.85%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of WEN. M&T Bank Corp boosted its stake in shares of 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 in the last quarter. Brown Financial Advisors increased its stake in shares of Wendy’s by 4.7% in the 2nd quarter. Brown Financial Advisors now owns 29,908 shares of the restaurant operator’s stock valued at $342,000 after purchasing an additional 1,339 shares in the last quarter. Bank of Nova Scotia raised its holdings in Wendy’s by 3.4% in the 3rd quarter. Bank of Nova Scotia now owns 40,993 shares of the restaurant operator’s stock worth $375,000 after purchasing an additional 1,343 shares during the period. Barnett & Company Inc. raised its holdings in Wendy’s by 10.7% in the 1st quarter. Barnett & Company Inc. now owns 16,600 shares of the restaurant operator’s stock worth $115,000 after purchasing an additional 1,600 shares during the period. Finally, NewEdge Advisors LLC boosted its position in Wendy’s by 14.6% during the fourth quarter. NewEdge Advisors LLC now owns 12,898 shares of the restaurant operator’s stock worth $107,000 after purchasing an additional 1,647 shares in the last quarter. Institutional investors and hedge funds 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.