Wendy’s (NASDAQ:WEN) Reaches New 1-Year Low – Here’s Why

The Wendy’s Company (NASDAQ:WEN)’s stock price hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $6.36 and last traded at $6.4050, with a volume of 4509255 shares. The stock had previously closed at $6.80.

Analyst Ratings Changes

A number of analysts have recently commented on WEN shares. BMO Capital Markets reissued a “market perform” rating on shares of Wendy’s in a research note on Wednesday, June 10th. Argus upgraded shares of Wendy’s from a “hold” rating to a “buy” rating and set a $12.00 price objective for the company in a report on Wednesday, May 13th. TD Cowen reiterated a “hold” rating and set a $6.00 target price on shares of Wendy’s in a research report on Tuesday, May 12th. Wall Street Zen raised shares of Wendy’s from a “sell” rating to a “hold” rating in a report on Saturday, May 16th. Finally, Mizuho set a $6.00 price target on shares of Wendy’s in a research report on Friday, May 1st. Five analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and six have given a Sell rating to the stock. According to data from MarketBeat.com, Wendy’s currently has an average rating of “Reduce” and an average target price of $8.56.

Wendy’s Stock Down 8.1%

The stock has a market cap of $1.19 billion, a price-to-earnings ratio of 8.03, a price-to-earnings-growth ratio of 0.49 and a beta of 0.38. The firm’s fifty day moving average price is $7.16 and its two-hundred day moving average price is $7.58. The company has a debt-to-equity ratio of 29.25, a current ratio of 1.83 and a quick ratio of 1.81.

Wendy’s (NASDAQ:WEN) last released 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 firm had revenue of $432.30 million for the quarter, compared to analyst estimates of $518.03 million. During the same period last year, the firm earned $0.20 earnings per share. The business’s quarterly revenue was up 3.3% compared to the same quarter last year. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. Sell-side analysts forecast that The Wendy’s Company will post 0.58 earnings per share for the current fiscal year.

Wendy’s Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were issued a $0.14 dividend. The ex-dividend date of this dividend was Monday, June 1st. This represents a $0.56 annualized dividend and a dividend yield of 9.0%. Wendy’s’s dividend payout ratio is currently 71.79%.

Institutional Trading of Wendy’s

Large investors have recently added to or reduced their stakes in the stock. PVG Asset Management Corp bought a new stake in shares of Wendy’s in the first quarter valued at $349,000. Empowered Funds LLC grew its stake in shares of Wendy’s by 23.2% during the 1st quarter. Empowered Funds LLC now owns 76,790 shares of the restaurant operator’s stock worth $534,000 after acquiring an additional 14,438 shares during the period. Bank of America Corp DE increased its holdings in Wendy’s by 5.6% in the 1st quarter. Bank of America Corp DE now owns 4,493,752 shares of the restaurant operator’s stock worth $31,232,000 after acquiring an additional 236,541 shares during the last quarter. Janus Henderson Group PLC increased its holdings in Wendy’s by 5.5% in the 1st quarter. Janus Henderson Group PLC now owns 927,506 shares of the restaurant operator’s stock worth $6,447,000 after acquiring an additional 48,009 shares during the last quarter. Finally, Bull Harbor Capital LLC bought a new stake in Wendy’s in the 1st quarter valued at about $75,000. Hedge funds and other institutional investors own 85.96% of the company’s stock.

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.