BMO Capital Markets Has Lowered Expectations for Wendy’s (NASDAQ:WEN) Stock Price

Wendy’s (NASDAQ:WEN) had its price target reduced by equities researchers at BMO Capital Markets from $11.00 to $9.00 in a report issued on Tuesday, Marketbeat.com reports. The firm presently has a “market perform” rating on the restaurant operator’s stock. BMO Capital Markets’ price objective would indicate a potential upside of 10.02% from the company’s current price.

WEN has been the subject of several other research reports. TD Cowen dropped their target price on shares of Wendy’s from $9.00 to $6.00 and set a “hold” rating for the company in a research report on Friday, February 13th. Stephens decreased their price objective on Wendy’s from $9.00 to $8.00 and set an “equal weight” rating for the company in a research note on Friday, February 13th. Mizuho cut their target price on Wendy’s from $8.00 to $7.00 and set an “underperform” rating on the stock in a research note on Friday, January 9th. Royal Bank Of Canada reissued a “sector perform” rating and issued a $8.50 target price on shares of Wendy’s in a research note on Monday, December 22nd. Finally, The Goldman Sachs Group decreased their target price on Wendy’s from $9.00 to $8.00 and set a “sell” rating for the company in a research report on Wednesday, December 17th. One investment 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 issued a Sell rating to the company. According to data from MarketBeat.com, Wendy’s presently has an average rating of “Hold” and an average price target of $9.39.

Wendy’s Stock Performance

Shares of NASDAQ:WEN opened at $8.18 on Tuesday. The company has a current ratio of 1.76, a quick ratio of 1.74 and a debt-to-equity ratio of 28.77. Wendy’s has a 1-year low of $6.73 and a 1-year high of $16.20. The stock has a market capitalization of $1.56 billion, a P/E ratio of 9.62, a P/E/G ratio of 1.97 and a beta of 0.38. The business has a 50-day moving average price of $8.15 and a two-hundred day moving average price of $8.89.

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

Hedge Funds Weigh In On Wendy’s

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. AQR Capital Management LLC increased its position in shares of Wendy’s by 30.1% in the second quarter. AQR Capital Management LLC now owns 13,843,438 shares of the restaurant operator’s stock valued at $158,092,000 after acquiring an additional 3,205,269 shares during the last quarter. Charles Schwab Investment Management Inc. grew its stake in Wendy’s by 3.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 7,091,847 shares of the restaurant operator’s stock valued at $59,075,000 after purchasing an additional 227,023 shares in the last quarter. Morgan Stanley increased its position in shares of Wendy’s by 5.8% during the 4th quarter. Morgan Stanley now owns 6,549,066 shares of the restaurant operator’s stock worth $54,554,000 after purchasing an additional 357,814 shares during the last quarter. State Street Corp raised its stake in shares of Wendy’s by 1.9% during the 4th quarter. State Street Corp now owns 5,446,335 shares of the restaurant operator’s stock worth $45,368,000 after purchasing an additional 102,084 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its stake in shares of 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 worth $57,568,000 after purchasing an additional 1,915,465 shares in the last quarter. 85.96% of the stock is owned by institutional investors and hedge funds.

Wendy’s News Roundup

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

• Positive Sentiment: Trian / Nelson Peltz signaled increased engagement and that it sees Wendy’s as undervalued — a classic activist catalyst that can unlock value via strategic moves or a sale. Wendy’s Shares Heat Up on Trian Disclosure
• Positive Sentiment: High-profile media coverage and quotes from Peltz calling WEN “undervalued” have amplified investor attention and optimism about near-term upside or takeover interest. Wendy’s Stock Surges After Billionaire Nelson Peltz Calls It Undervalued
• Positive Sentiment: Derivative activity skewed bullish today — a surge in call buying and much higher-than-normal volume — which amplifies upward price momentum and signals speculative/trader conviction.
• Neutral Sentiment: Wendy’s issued a measured statement that the board regularly reviews strategy to maximize shareholder value; that neither confirms nor rules out specific actions. The Wendy’s Company Comments on Amended 13D Filing from Trian Partners
• Neutral Sentiment: Reports note Trian has talked with financing sources and partners about possible deals; this raises uncertainty — outcomes could range from a board settlement to an outright takeover or stake sale. Wendy’s shares soar 15% after billionaire Nelson Peltz says stock is undervalued
• Negative Sentiment: Underlying fundamentals are weak: recent soft guidance, lower revenues, and plans to close hundreds of U.S. locations have pressured sentiment and led to analyst downgrades/price-target cuts. Wendy’s stock sinks to six-year low after soft outlook
• Negative Sentiment: Earlier unusual put buying and multiple analyst downgrades indicate real downside risk if activist momentum fades or operational trends don’t improve.

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.