The Wendy’s Company (NASDAQ:WEN) Receives $7.76 Consensus PT from Brokerages

The Wendy’s Company (NASDAQ:WEN) has received an average rating of “Reduce” from the twenty-one ratings firms that are currently covering the firm, MarketBeat.com reports. Six research 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 issued ratings on the stock in the last year is $7.7632.

WEN has been the subject of several recent research reports. UBS Group reiterated a “neutral” rating and set a $8.00 target price on shares of Wendy’s in a report on Monday, August 10th. Morgan Stanley set a $5.50 price objective on Wendy’s in a research report on Monday, August 10th. Stephens reiterated an “equal weight” rating and set a $8.00 price objective on shares of Wendy’s in a research note on Tuesday, June 23rd. Weiss Ratings reissued a “sell (d+)” rating on shares of Wendy’s in a report on Friday, July 17th. Finally, Wall Street Zen raised Wendy’s from a “sell” rating to a “hold” rating in a report on Saturday, May 16th.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. M&T Bank Corp increased its position in shares of Wendy’s by 8.4% during the second quarter. M&T Bank Corp now owns 16,987 shares of the restaurant operator’s stock valued at $194,000 after acquiring an additional 1,310 shares in the last quarter. Brown Financial Advisors lifted its position in 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 acquiring an additional 1,339 shares in the last quarter. Bank of Nova Scotia lifted its position 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 valued at $375,000 after acquiring an additional 1,343 shares in the last quarter. Barnett & Company Inc. lifted its position in Wendy’s by 10.7% in the 1st quarter. Barnett & Company Inc. now owns 16,600 shares of the restaurant operator’s stock valued at $115,000 after acquiring an additional 1,600 shares in the last quarter. Finally, NewEdge Advisors LLC boosted its stake in Wendy’s by 14.6% during the 4th quarter. NewEdge Advisors LLC now owns 12,898 shares of the restaurant operator’s stock valued at $107,000 after purchasing an additional 1,647 shares during the last quarter. 85.96% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Wendy’s

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

Wendy’s Price Performance

WEN opened at $8.27 on Monday. The company has a current ratio of 1.90, a quick ratio of 1.88 and a debt-to-equity ratio of 27.95. The company has a market cap of $1.58 billion, a price-to-earnings ratio of 12.53, a price-to-earnings-growth ratio of 0.65 and a beta of 0.37. The stock has a fifty day simple moving average of $7.89 and a two-hundred day simple moving average of $7.46. Wendy’s has a 12-month low of $6.07 and a 12-month high of $10.62.

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

Wendy’s Cuts Dividend

The company also recently disclosed 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 of this dividend is Tuesday, September 1st. Wendy’s’s dividend payout ratio is 84.85%.

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.