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

The Wendy’s Company (NASDAQ:WEN)’s stock price gapped down prior to trading on Monday . The stock had previously closed at $7.30, but opened at $7.01. Wendy’s shares last traded at $6.9750, with a volume of 1,152,226 shares.

Wall Street Analyst Weigh In

Several research firms recently weighed in on WEN. UBS Group decreased their price target on Wendy’s from $8.50 to $7.50 and set a “neutral” rating on the stock in a report on Tuesday, February 17th. Mizuho set a $6.00 price target on shares of Wendy’s in a research note on Friday, May 1st. BMO Capital Markets dropped their price target on shares of Wendy’s from $9.00 to $8.00 and set a “market perform” rating for the company in a research note on Monday. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Wendy’s in a research note on Monday, April 20th. Finally, TD Cowen dropped their price target on shares of Wendy’s from $9.00 to $6.00 and set a “hold” rating for the company in a research note on Friday, February 13th. Four research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and six have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Reduce” and an average price target of $8.39.

Wendy’s Stock Down 7.5%

The business’s fifty day moving average is $7.05 and its two-hundred day moving average is $7.87. The company has a market cap of $1.29 billion, a P/E ratio of 8.66, a price-to-earnings-growth ratio of 2.06 and a beta of 0.35. The company has a debt-to-equity ratio of 29.25, a quick ratio of 1.81 and a current ratio of 1.83.

Wendy’s (NASDAQ:WEN) last announced its quarterly earnings data on Friday, May 8th. The restaurant operator reported $0.12 earnings per share for the quarter, beating analysts’ consensus estimates of $0.10 by $0.02. Wendy’s had a net margin of 6.77% and a return on equity of 136.46%. The company had revenue of $432.30 million during the quarter, compared to analyst estimates of $518.03 million. During the same quarter last year, the business posted $0.20 EPS. The firm’s revenue for the quarter was up 3.3% on a year-over-year basis. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. Equities analysts predict that The Wendy’s Company will post 0.58 EPS for the current year.

Wendy’s Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be given a dividend of $0.14 per share. The ex-dividend date of this dividend is Monday, June 1st. This represents a $0.56 dividend on an annualized basis and a yield of 8.3%. Wendy’s’s dividend payout ratio (DPR) is 71.79%.

Institutional Trading of Wendy’s

Institutional investors have recently modified their holdings of the company. Versant Capital Management Inc boosted its holdings in shares of Wendy’s by 19,693.8% in the 3rd quarter. Versant Capital Management Inc now owns 3,167 shares of the restaurant operator’s stock valued at $29,000 after buying an additional 3,151 shares in the last quarter. MassMutual Private Wealth & Trust FSB boosted its holdings in shares of Wendy’s by 205.0% in the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 3,257 shares of the restaurant operator’s stock valued at $30,000 after buying an additional 2,189 shares in the last quarter. Hilton Head Capital Partners LLC bought a new stake in shares of Wendy’s in the 4th quarter valued at about $30,000. Cassaday & Co Wealth Management LLC bought a new stake in shares of Wendy’s in the 1st quarter valued at about $30,000. Finally, Fifth Third Bancorp boosted its holdings in shares of Wendy’s by 161.0% in the 4th 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 in the last quarter. 85.96% of the stock is currently owned by institutional investors.

About Wendy’s

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.