The Wendy's Co Stock Rating Reaffirmed by Zacks (WEN)
The Wendy's Co (NYSE:WEN)‘s stock had its “neutral” rating reaffirmed by Zacks in a report issued on Monday. They currently have a $8.50 price objective on the stock. Zacks‘s price target indicates a potential upside of 4.42% from the company’s current price.
Zacks’ analyst wrote, “The Wendy’s Company posted second quarter 2014 adjusted earnings of $0.09 per share that were in line with the Zacks Consensus Estimate and up 12.5% year over year. The year-over-year rise reflects improved margins, a decline in interest expense and lower share count. Total revenue declined 19.5% year over year to $523.4 million due to a reduction in the number of company-operated restaurants. Also, the company announced plans to sell 135 company-operated restaurants in Canada which would pressurize revenues going forward. However, second quarter revenues beat the consensus mark by 1.2%, which we believe was due to comps growth and sales initiatives. Over the long-term, we remain optimistic on the company’s sales initiatives, which include menu innovation, international expansion and re-imaging of units. However, higher beef costs and incremental capital spending keep us on the sidelines. We maintain our Neutral recommendation on the stock. “
Several other analysts have also recently commented on the stock. Analysts at Buckingham Research initiated coverage on shares of The Wendy's Co in a research note on Friday, July 18th. They set a “buy” rating and a $11.00 price target on the stock. Analysts at Argus downgraded shares of The Wendy's Co from a “buy” rating to a “hold” rating in a research note on Tuesday, June 10th. They now have a $8.50 price target on the stock, down previously from $12.00. Six analysts have rated the stock with a hold rating and two have issued a buy rating to the company. The stock currently has an average rating of “Hold” and an average price target of $9.14.
Shares of The Wendy's Co (NYSE:WEN) traded up 1.54% on Monday, hitting $8.265. 1,984,237 shares of the company’s stock traded hands. The Wendy's Co has a 52 week low of $7.54 and a 52 week high of $10.27. The stock has a 50-day moving average of $8.33 and a 200-day moving average of $8.6. The company has a market cap of $3.033 billion and a P/E ratio of 30.60.
The Wendy's Co (NYSE:WEN) last issued its quarterly earnings data on Thursday, August 7th. The company reported $0.09 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.10 by $0.01. The company had revenue of $523.40 million for the quarter, compared to the consensus estimate of $515.86 million. During the same quarter last year, the company posted $0.08 earnings per share. The Wendy's Co’s revenue was down 19.5% compared to the same quarter last year. On average, analysts predict that The Wendy's Co will post $0.35 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be paid a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a dividend yield of 2.46%. The ex-dividend date is Thursday, August 28th.
The Wendy’s Company is a quick-service restaurant company in the hamburger sandwich segment. Wendy’s is primarily engaged in the business of operating, developing and franchising a system of distinctive quick-service restaurants serving food.
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