Wendy’s (NASDAQ:WEN) Trading Down 9.7% on Analyst Downgrade

The Wendy’s Company (NASDAQ:WEN)’s share price was down 9.7% during trading on Tuesday after BMO Capital Markets lowered their price target on the stock from $11.00 to $9.00. BMO Capital Markets currently has a market perform rating on the stock. Wendy’s traded as low as $6.74 and last traded at $6.7550. Approximately 7,423,873 shares changed hands during trading, a decline of 5% from the average daily volume of 7,842,782 shares. The stock had previously closed at $7.48.

Several other brokerages have also recently weighed in on WEN. Zacks Research raised shares of Wendy’s from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 11th. UBS Group dropped their target price on Wendy’s from $9.50 to $8.50 and set a “neutral” rating on the stock in a report on Tuesday, January 6th. Barclays cut their target price on Wendy’s from $9.00 to $8.00 and set an “equal weight” rating on the stock in a research report on Tuesday. Stifel Nicolaus set a $8.00 target price on shares of Wendy’s in a report on Monday. Finally, Stephens cut their price objective on Wendy’s from $9.00 to $8.00 and set an “equal weight” rating on the stock in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, sixteen have given a Hold rating and five have assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $9.57.

Key Stories Impacting Wendy’s

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

• Positive Sentiment: Wendy’s launched a limited?time Thin Mints Frosty Fusion and brought back the Thin Mints Frosty Swirl, plus broader Girl Scout booth partnerships — a seasonal promotion that can help traffic, AUVs and PR momentum during cookie season. The Iconic Duo Returns: Wendy’s Thin Mints Frosty Is Back
• Positive Sentiment: Promotional offers and limited?time deals (e.g., $1 single, free chili) continue to push value messaging aimed at regaining traffic — a logical short?term tactic to blunt comp declines. February deals
• Neutral Sentiment: Management frames closures as a strategic footprint optimization to focus on value and boost overall sales — this can improve long?term margins but typically signals near?term execution risk and lost revenue. Wendy’s to close hundreds restaurants
• Negative Sentiment: Multiple outlets report Wendy’s plans to close roughly 5% of U.S. stores (?300 locations) after plunging sales — investors view large closures as evidence of material weakness in the core U.S. business and a catalyst for lower near?term revenue and guidance revisions. Wendy’s to close roughly 300 US locations
• Negative Sentiment: Analyst downgrades and critical writeups (e.g., Seeking Alpha piece arguing Wendy’s is falling behind peers) are putting further downward pressure by highlighting market?share loss, weak U.S. comps and execution risk. Wendy’s: Falling Sharply Behind In Fast Food Wars

Institutional Investors Weigh In On Wendy’s

Several hedge funds have recently bought and sold shares of WEN. Marshall Wace LLP purchased a new position in Wendy’s in the 3rd quarter worth about $36,912,000. AQR Capital Management LLC boosted its stake in Wendy’s by 30.1% in the 2nd quarter. AQR Capital Management LLC now owns 13,843,438 shares of the restaurant operator’s stock worth $158,092,000 after purchasing an additional 3,205,269 shares during the period. Wells Fargo & Company MN grew its holdings in Wendy’s by 258.6% during the 4th quarter. Wells Fargo & Company MN now owns 4,224,648 shares of the restaurant operator’s stock valued at $35,191,000 after buying an additional 3,046,517 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of Wendy’s by 61.3% during the second quarter. Arrowstreet Capital Limited Partnership now owns 5,041,012 shares of the restaurant operator’s stock valued at $57,568,000 after buying an additional 1,915,465 shares during the last quarter. Finally, Norges Bank bought a new stake in shares of Wendy’s in the second quarter worth about $18,929,000. Institutional investors own 85.96% of the company’s stock.

Wendy’s Price Performance

The company has a quick ratio of 1.74, a current ratio of 1.76 and a debt-to-equity ratio of 28.77. The company has a market capitalization of $1.30 billion, a PE ratio of 8.01, a price-to-earnings-growth ratio of 2.10 and a beta of 0.38. The firm’s 50 day simple moving average is $8.17 and its 200 day simple moving average is $8.91.

Wendy’s (NASDAQ:WEN) last released its quarterly earnings results on Friday, February 13th. The restaurant operator reported $0.16 EPS for the quarter, beating the consensus estimate of $0.14 by $0.02. Wendy’s had a net margin of 7.58% and a return on equity of 145.93%. The business had revenue of $439.60 million during the quarter, compared to analyst estimates of $537.11 million. During the same period in the prior year, the firm posted $0.25 earnings per share. The company’s quarterly revenue was down 5.5% on a year-over-year basis. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. As a group, research analysts anticipate that The Wendy’s Company will post 0.99 EPS for the current fiscal year.

Wendy’s Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Monday, March 2nd will be paid a $0.14 dividend. The ex-dividend date is Monday, March 2nd. This represents a $0.56 dividend on an annualized basis and a yield of 8.2%. Wendy’s’s dividend payout ratio (DPR) is 65.88%.

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.