Wendy’s (NASDAQ:WEN) Hits New 12-Month Low Following Analyst Downgrade

The Wendy’s Company (NASDAQ:WEN) hit a new 52-week low during trading on Wednesday after Royal Bank Of Canada lowered their price target on the stock from $8.50 to $8.00. Royal Bank Of Canada currently has a sector perform rating on the stock. Wendy’s traded as low as $6.73 and last traded at $7.00, with a volume of 22510477 shares trading hands. The stock had previously closed at $7.48.

Several other equities research analysts have also recently commented on the company. Zacks Research raised Wendy’s from a “strong sell” rating to a “hold” rating in a research note on Tuesday, November 11th. UBS Group cut their price target on shares of Wendy’s from $8.50 to $7.50 and set a “neutral” rating on the stock in a report on Tuesday. Evercore set a $8.00 price objective on shares of Wendy’s in a report on Tuesday. BMO Capital Markets lowered their target price on shares of Wendy’s from $11.00 to $9.00 and set a “market perform” rating on the stock in a research report on Tuesday. Finally, Morgan Stanley restated an “underweight” rating and set a $7.00 target price on shares of Wendy’s in a report on Monday. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, sixteen have issued a Hold rating and five have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $9.39.

Key Wendy’s News

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

• Positive Sentiment: Cheap valuation and rebound potential: several writeups argue WEN is deeply valued vs. peers and could rally if comps and margins stabilize — this is a constructive long‑term note for value investors. Wendy’s Stock Is Cheap, But Can the Turnaround Actually Work?
• Positive Sentiment: Some analysts still see upside: Truist trimmed its price target but maintained a Buy rating, indicating there are analysts who expect a recovery if execution improves. WEN price target lowered by Truist
• Positive Sentiment: Promotions and seasonal menu tie‑ins continue (Thin Mints Frosty), which help traffic and community engagement in the near term. The Iconic Duo Returns: Wendy’s Thin Mints Frosty Is Back
• Neutral Sentiment: Mixed analyst moves: RBC and BMO lowered price targets and shifted to more conservative ratings (sector/market perform), compressing near‑term sentiment even where some firms remain constructive on upside. Benzinga coverage of analyst target changes
• Negative Sentiment: Soft outlook and guidance: the company issued a weaker outlook and warned U.S. comps remain pressured, a primary catalyst for today’s selloff. Wendy’s Stock Sinks To Six-Year Low After Soft Outlook
• Negative Sentiment: Large-scale closures announced (~300 U.S. locations): management plans to close hundreds of underperforming restaurants to refocus the footprint, which highlights weak U.S. performance and raises short‑term comps, execution and cash‑flow concerns. Wendy’s to close roughly 300 US locations
• Negative Sentiment: Investor sentiment turned sharply negative: unusually heavy put buying and elevated short interest signal hedging/speculative bearish bets that can accelerate selling pressure. (Options flow reported intraday.)
• Negative Sentiment: Critical coverage and downgrades: multiple bearish takes and at least one downgrade argue Wendy’s is losing share in key categories, increasing the risk of further margin pressure and potential dividend/buyback cuts. Why Wendy’s Stock Tanked on Tuesday Wendy’s: Falling Sharply Behind In Fast Food Wars (Seeking Alpha)

Institutional Trading of Wendy’s

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Marshall Wace LLP bought a new position in Wendy’s in the 3rd quarter worth approximately $36,912,000. AQR Capital Management LLC grew its stake in shares of Wendy’s by 38.1% in the fourth quarter. AQR Capital Management LLC now owns 11,705,610 shares of the restaurant operator’s stock worth $97,508,000 after acquiring an additional 3,227,366 shares during the last quarter. Wells Fargo & Company MN increased its position in Wendy’s by 258.6% during the fourth quarter. Wells Fargo & Company MN now owns 4,224,648 shares of the restaurant operator’s stock worth $35,191,000 after acquiring an additional 3,046,517 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in Wendy’s by 61.3% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 5,041,012 shares of the restaurant operator’s stock valued at $57,568,000 after purchasing an additional 1,915,465 shares during the last quarter. Finally, Norges Bank acquired a new position in Wendy’s during the 2nd quarter valued at $18,929,000. Institutional investors and hedge funds own 85.96% of the company’s stock.

Wendy’s Trading Down 6.4%

The company has a current ratio of 1.76, a quick ratio of 1.74 and a debt-to-equity ratio of 28.77. The stock has a market capitalization of $1.33 billion, a P/E ratio of 8.24, a P/E/G ratio of 2.10 and a beta of 0.38. The business’s fifty day simple moving average is $8.15 and its two-hundred day simple moving average is $8.89.

Wendy’s (NASDAQ:WEN) last posted its quarterly earnings data on Friday, February 13th. The restaurant operator reported $0.16 earnings per share (EPS) for the quarter, topping 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 company had revenue of $439.60 million for the quarter, compared to the consensus estimate of $537.11 million. During the same quarter in the previous year, the firm posted $0.25 EPS. The business’s revenue was down 5.5% compared to the same quarter last year. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. As a group, analysts forecast that The Wendy’s Company will post 0.99 earnings per share for the current year.

Wendy’s Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 2nd will be given a $0.14 dividend. The ex-dividend date is Monday, March 2nd. This represents a $0.56 dividend on an annualized basis and a dividend yield of 8.0%. Wendy’s’s dividend payout ratio (DPR) is currently 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.