The Wendy’s Company (NASDAQ:WEN) Stock Has Average Target Price of $7.78 According to Analysts

Shares of The Wendy’s Company (NASDAQ:WEN) have been given an average recommendation of “Reduce” by the twenty research firms that are presently covering the company, MarketBeat Ratings reports. Five research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and two have assigned a buy rating to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $7.82.

A number of research analysts have commented on the company. Morgan Stanley set a $5.50 target price on Wendy’s in a report on Monday, August 10th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Wendy’s in a report on Friday, July 17th. Seaport Research Partners began coverage on Wendy’s in a research report on Wednesday, September 16th. They set a “neutral” rating on the stock. UBS Group restated a “neutral” rating and set a $8.00 price objective on shares of Wendy’s in a research note on Monday, August 10th. Finally, Citigroup lifted their price objective on shares of Wendy’s from $8.00 to $8.25 and gave the stock a “neutral” rating in a report on Tuesday, September 1st.

Hedge Funds Weigh In On Wendy’s

A number of large investors have recently bought and sold shares of WEN. Envestnet Asset Management Inc. grew its holdings in shares of Wendy’s by 62.6% during the second quarter. Envestnet Asset Management Inc. now owns 74,030 shares of the restaurant operator’s stock valued at $614,000 after purchasing an additional 28,508 shares during the last quarter. State Street Corp boosted its position in Wendy’s by 20.1% during the 2nd quarter. State Street Corp now owns 6,566,985 shares of the restaurant operator’s stock valued at $54,440,000 after purchasing an additional 1,101,063 shares during the period. The Manufacturers Life Insurance Company grew its stake in Wendy’s by 130.0% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 86,902 shares of the restaurant operator’s stock worth $720,000 after buying an additional 49,124 shares during the last quarter. WINTON GROUP Ltd grew its stake in Wendy’s by 48.8% during the 2nd quarter. WINTON GROUP Ltd now owns 291,578 shares of the restaurant operator’s stock worth $2,417,000 after buying an additional 95,596 shares during the last quarter. Finally, NewEdge Advisors LLC grew its position in shares of Wendy’s by 1,557.9% during the second quarter. NewEdge Advisors LLC now owns 12,832 shares of the restaurant operator’s stock worth $106,000 after acquiring an additional 12,058 shares during the last quarter. Institutional investors own 85.96% of the company’s stock.

Wendy’s Price Performance

Shares of WEN stock opened at $6.51 on Friday. The firm has a fifty day moving average of $7.79 and a two-hundred day moving average of $7.43. The firm has a market cap of $1.24 billion, a P/E ratio of 9.86, a P/E/G ratio of 0.69 and a beta of 0.39. Wendy’s has a 1-year low of $6.07 and a 1-year high of $10.12. The company has a debt-to-equity ratio of 27.95, a current ratio of 1.90 and a quick ratio of 1.88.

Wendy’s (NASDAQ:WEN) last issued its earnings results on Friday, August 7th. The restaurant operator reported $0.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 net margin of 5.72% and a return on equity of 115.31%. The company’s revenue for the quarter was up 1.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.29 EPS. As a group, research analysts anticipate that Wendy’s will post 0.5 earnings per share for the current fiscal year.

Wendy’s Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were issued a $0.07 dividend. This is a drop from Wendy’s’s previous quarterly dividend of $0.14. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $0.28 annualized dividend and a dividend yield of 4.3%. Wendy’s’s dividend payout ratio (DPR) is presently 42.42%.

More Wendy’s News

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

• Positive Sentiment: Wendy’s launched a six-song emo/pop-punk EP featuring musicians from bands including Silverstein and Blessthefall. The campaign could generate social-media attention and strengthen brand engagement, although its direct financial impact is uncertain. Wendy’s Goes Emo with Songs to Listen to in a Wendy’s Parking Lot
• Neutral Sentiment: Coverage ranking Wendy’s breakfast sandwiches and describing the emo campaign reflects consumer and cultural interest, but provides no clear evidence of changes to sales, margins, or earnings. Wendy’s Breakfast Sandwiches Ranked
• Neutral Sentiment: A market-data update reported zero short interest and a zero-day short-interest ratio as of September 24. That figure conflicts with the description of a “significant increase” in short interest, so it does not provide a reliable directional signal for WEN.
• Negative Sentiment: A major Wendy’s franchisee filed for bankruptcy after Wendy’s said it had terminated the franchisee’s right to operate. The operator reportedly controlled approximately 314 restaurants, with locations in Georgia, Ohio, Indiana, Michigan, Massachusetts, Mississippi, and other markets potentially affected. Wendy’s Franchisee Bankruptcy and 314 Restaurants
• Negative Sentiment: The bankruptcy creates uncertainty over restaurant operations, potential closures, franchise royalty revenue, and the cost and speed of transferring locations to new operators. Reports that seven Mississippi restaurants and 13 Massachusetts restaurants could be affected add to concerns about franchisee health and store stability. Wendy’s Franchisee Files for Bankruptcy
• Negative Sentiment: Wendy’s shares also weakened alongside broader restaurant-sector pressure after McDonald’s investor-day announcement highlighted substantial franchisee support needs, likely increasing investor focus on franchisee finances across the industry. Restaurant Sector Franchisee Support Concerns

About Wendy’s

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.