Wendy’s Company (The) (NASDAQ:WEN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Thursday.

According to Zacks, “Wendy’s revenues have been declining year over year over the past few quarters. The downside reflects a reduction in the number of company-operated restaurants. Though transition to a franchise-based business model is expected to lower Wendy’s general and administrative expenses and in turn boost earnings, 2017 onwards, it has been weighing on revenues in the near term. Nonetheless, various sales and technology initiatives along with international expansion of units are expected to drive growth. Meanwhile, Wendy’s shares have outperformed the industry over the past three months. However, earnings estimates for the current quarter and year have declined over the past two months, reflecting analysts’ pessimism about the stock’s prospects. Rising costs, incremental capital spending along with a soft industry backdrop add to the concerns.”

A number of other equities analysts have also commented on WEN. Stifel Nicolaus assumed coverage on Wendy’s Company (The) in a research note on Monday. They issued a “buy” rating and a $18.00 price objective on the stock. SunTrust Banks, Inc. reaffirmed a “buy” rating and issued a $18.00 price objective on shares of Wendy’s Company (The) in a research note on Monday. BidaskClub raised Wendy’s Company (The) from a “sell” rating to a “hold” rating in a research note on Monday, September 18th. Longbow Research raised Wendy’s Company (The) from a “neutral” rating to a “buy” rating and lifted their price objective for the stock from $15.23 to $18.00 in a research note on Friday, September 15th. Finally, Bank of America Corporation reaffirmed a “neutral” rating and issued a $17.00 price objective on shares of Wendy’s Company (The) in a research note on Monday, August 14th. Two analysts have rated the stock with a sell rating, ten have assigned a hold rating and nine have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and a consensus target price of $15.89.

Shares of Wendy’s Company (NASDAQ WEN) traded up 1.63% on Thursday, reaching $15.63. 2,446,529 shares of the company traded hands. The firm’s 50 day moving average is $15.09 and its 200 day moving average is $15.11. Wendy’s Company has a one year low of $10.51 and a one year high of $16.66. The company has a market capitalization of $3.81 billion, a P/E ratio of 40.60 and a beta of 0.99.

Wendy’s Company (The) (NASDAQ:WEN) last announced its quarterly earnings results on Wednesday, August 9th. The restaurant operator reported $0.15 EPS for the quarter, beating the Zacks’ consensus estimate of $0.13 by $0.02. Wendy’s Company (The) had a return on equity of 19.67% and a net margin of 7.68%. The firm had revenue of $320.34 million for the quarter. During the same period in the previous year, the business posted $0.10 earnings per share. The business’s revenue for the quarter was down 16.3% compared to the same quarter last year. Analysts expect that Wendy’s Company will post $0.47 earnings per share for the current fiscal year.

TRADEMARK VIOLATION NOTICE: This article was originally posted by American Banking News and is the property of of American Banking News. If you are reading this article on another domain, it was stolen and republished in violation of United States and international copyright and trademark law. The original version of this article can be read at https://www.americanbankingnews.com/2017/10/05/zacks-investment-research-lowers-wendys-company-the-wen-to-sell.html.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. USA Financial Portformulas Corp increased its holdings in shares of Wendy’s Company (The) by 16.1% during the second quarter. USA Financial Portformulas Corp now owns 66,331 shares of the restaurant operator’s stock valued at $1,029,000 after acquiring an additional 9,201 shares in the last quarter. WFG Advisors LP increased its holdings in shares of Wendy’s Company (The) by 50.2% during the second quarter. WFG Advisors LP now owns 7,017 shares of the restaurant operator’s stock valued at $109,000 after acquiring an additional 2,344 shares in the last quarter. Piedmont Investment Advisors LLC increased its holdings in shares of Wendy’s Company (The) by 43.4% during the second quarter. Piedmont Investment Advisors LLC now owns 106,467 shares of the restaurant operator’s stock valued at $1,651,000 after acquiring an additional 32,234 shares in the last quarter. Castleark Management LLC bought a new stake in shares of Wendy’s Company (The) during the second quarter valued at approximately $14,085,000. Finally, Raymond James Financial Services Advisors Inc. increased its holdings in shares of Wendy’s Company (The) by 0.4% during the second quarter. Raymond James Financial Services Advisors Inc. now owns 103,851 shares of the restaurant operator’s stock valued at $1,611,000 after acquiring an additional 423 shares in the last quarter. Hedge funds and other institutional investors own 76.50% of the company’s stock.

Wendy’s Company (The) Company Profile

The Wendy’s Company is the parent company of subsidiary holding company Wendy’s Restaurants, LLC (Wendy’s Restaurants). Wendy’s Restaurants is the parent company of Wendy’s International, LLC (Wendy’s), which is the owner and franchisor of the Wendy’s restaurant system in the United States. Wendy’s is a restaurant company specializing in the hamburger sandwich segment.

Get a free copy of the Zacks research report on Wendy’s Company (The) (WEN)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Wendy`s Company (The) (NASDAQ:WEN)

Receive News & Ratings for Wendy's Company (The) Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Wendy's Company (The) and related companies with MarketBeat.com's FREE daily email newsletter.