Analysts Set The Wendy’s Company (NASDAQ:WEN) PT at $7.78

Shares of The Wendy’s Company (NASDAQ:WEN) have been given a consensus rating of “Reduce” by the twenty-one analysts that are presently covering the firm, MarketBeat reports. Six analysts have rated the stock with a sell recommendation, thirteen have assigned a hold recommendation and two have issued a buy recommendation on the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $7.7763.

Several equities research analysts have issued reports on WEN shares. Citigroup lifted their target price on shares of Wendy’s from $8.00 to $8.25 and gave the company a “neutral” rating in a research report on Tuesday, September 1st. Stephens reaffirmed an “equal weight” rating and issued a $8.00 target price on shares of Wendy’s in a research note on Tuesday, June 23rd. UBS Group reaffirmed a “neutral” rating and set a $8.00 price target on shares of Wendy’s in a research report on Monday, August 10th. Seaport Research Partners assumed coverage on Wendy’s in a research note on Wednesday, September 16th. They set a “neutral” rating on the stock. Finally, BMO Capital Markets reaffirmed a “market perform” rating on shares of Wendy’s in a research note on Monday, August 10th.

Institutional Trading of Wendy’s

Several institutional investors and hedge funds have recently bought and sold shares of WEN. Global Retirement Partners LLC bought a new stake in Wendy’s during the 2nd quarter valued at about $27,000. Hilton Head Capital Partners LLC bought a new position in shares of Wendy’s in the fourth quarter worth approximately $30,000. Cassaday & Co Wealth Management LLC bought a new position in shares of Wendy’s in the first quarter worth approximately $30,000. SJS Investment Consulting Inc. purchased a new stake in shares of Wendy’s during the first quarter valued at approximately $32,000. Finally, Nykredit A S purchased a new stake in shares of Wendy’s during the second quarter valued at approximately $37,000. 85.96% of the stock is currently owned by hedge funds and other institutional investors.

Wendy’s Price Performance

WEN opened at $6.81 on Friday. Wendy’s has a twelve month low of $6.07 and a twelve month high of $10.12. The firm has a 50-day moving average price of $7.84 and a 200-day moving average price of $7.44. The company has a quick ratio of 1.88, a current ratio of 1.90 and a debt-to-equity ratio of 27.95. The company has a market capitalization of $1.30 billion, a price-to-earnings ratio of 10.32, a PEG ratio of 0.68 and a beta of 0.39.

Wendy’s (NASDAQ:WEN) last announced its quarterly earnings results on Friday, August 7th. The restaurant operator reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.02. The firm had revenue of $570.57 million for the quarter, compared to analysts’ expectations of $557.13 million. Wendy’s had a return on equity of 115.31% and a net margin of 5.72%.The company’s revenue was up 1.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.29 earnings per share. Equities analysts expect that Wendy’s will post 0.5 EPS for the current year.

Wendy’s Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were paid a dividend of $0.07 per share. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $0.28 dividend on an annualized basis and a dividend yield of 4.1%. Wendy’s’s payout ratio is presently 42.42%.

Wendy’s News Summary

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

• Positive Sentiment: Wendy’s is seeking to enforce the termination of Meritage Hospitality Group’s franchise rights, arguing that the bankrupt operator no longer has the right to run its 314 restaurants. Reclaiming or reallocating these locations could help protect the brand and improve operations over time. Wendy’s seeks to enforce termination of Meritage franchise rights
• Positive Sentiment: Flynn Group unveiled a remodeled Wendy’s restaurant in Matawan, New Jersey, with a promotional giveaway. The investment indicates that some franchise operators continue to support remodels and local traffic-building initiatives, although the financial impact is limited at the corporate level. Flynn Group unveils remodeled Wendy’s in Matawan
• Neutral Sentiment: The bankruptcy involves an operator of more than 300 Wendy’s restaurants across multiple states, including Florida, Tennessee, Massachusetts and Connecticut. Reports indicate that many locations are expected to remain open while the operator restructures, limiting the immediate impact on Wendy’s royalty revenue but creating uncertainty around store ownership and execution. Operator of 314 Wendy’s locations files for bankruptcy protection
• Negative Sentiment: The franchisee cited record beef costs, weak marketing and difficult operating conditions. Related reports say additional Wendy’s restaurants have dropped breakfast following a partner’s Chapter 11 filing. These developments reinforce concerns about rising food costs, weak sales productivity and pressure on franchisee economics across the system. Wendy’s franchisee blames bankruptcy on weak marketing and beef costs

Wendy’s Company Profile

The Wendy’s Company (NASDAQ: WEN) operates and franchises the Wendy’s quick-service restaurant chain. Its restaurants serve hamburgers, chicken sandwiches, salads, fries, breakfast items, baked goods, beverages and other menu offerings. The company also supports restaurant operations through digital ordering, delivery and loyalty programs.

Wendy’s was founded by Dave Thomas in Columbus, Ohio, in 1969. The brand is known for its square hamburgers, made-to-order preparation and “old-fashioned” positioning.