Wendy’s Sees Unusually High Options Volume (NASDAQ:WEN)

The Wendy’s Company (NASDAQ:WEN) was the target of some unusual options trading activity on Tuesday. Investors purchased 155,655 put options on the stock. This represents an increase of approximately 1,156% compared to the average volume of 12,392 put options.

Key Headlines Impacting Wendy’s

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.

Analyst Upgrades and Downgrades

WEN has been the subject of several research reports. Zacks Research upgraded Wendy’s from a “strong sell” rating to a “hold” rating in a research note on Tuesday, November 11th. JPMorgan Chase & Co. reiterated a “neutral” rating and set a $9.00 price target (down from $12.00) on shares of Wendy’s in a research report on Wednesday, December 3rd. Mizuho decreased their price objective on Wendy’s from $8.00 to $7.00 and set an “underperform” rating on the stock in a report on Friday, January 9th. BMO Capital Markets dropped their target price on shares of Wendy’s from $11.00 to $9.00 and set a “market perform” rating for the company in a report on Tuesday. Finally, Sanford C. Bernstein set a $9.00 target price on shares of Wendy’s in a research report on Wednesday, October 22nd. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, sixteen have given a Hold rating and five have assigned a Sell rating to the company’s stock. According to MarketBeat, Wendy’s has a consensus rating of “Hold” and an average target price of $9.39.

Wendy’s Price Performance

Shares of WEN stock opened at $8.18 on Thursday. The firm’s 50-day moving average is $8.15 and its two-hundred day moving average is $8.89. Wendy’s has a 12 month low of $6.73 and a 12 month high of $16.20. The company has a debt-to-equity ratio of 28.77, a current ratio of 1.76 and a quick ratio of 1.74. The company has a market capitalization of $1.56 billion, a PE ratio of 9.62, a price-to-earnings-growth ratio of 1.97 and a beta of 0.38.

Wendy’s (NASDAQ:WEN) last released its quarterly earnings results on Friday, February 13th. The restaurant operator reported $0.16 EPS for the quarter, beating the consensus estimate of $0.14 by $0.02. The firm 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 business’s revenue for the quarter was down 5.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.25 EPS. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. Analysts predict that Wendy’s will post 0.99 earnings per share for the current year.

Wendy’s Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Monday, March 2nd will be issued a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 6.8%. The ex-dividend date is Monday, March 2nd. Wendy’s’s payout ratio is 65.88%.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Elevation Point Wealth Partners LLC purchased a new position in shares of Wendy’s during the 2nd quarter worth approximately $25,000. Investors Research Corp acquired a new position in Wendy’s during the third quarter worth $27,000. Versant Capital Management Inc boosted its position in shares of Wendy’s by 19,693.8% during the third quarter. Versant Capital Management Inc now owns 3,167 shares of the restaurant operator’s stock worth $29,000 after buying an additional 3,151 shares during the period. MassMutual Private Wealth & Trust FSB grew its stake in shares of Wendy’s by 205.0% in the third quarter. MassMutual Private Wealth & Trust FSB now owns 3,257 shares of the restaurant operator’s stock valued at $30,000 after buying an additional 2,189 shares in the last quarter. Finally, Hilton Head Capital Partners LLC purchased a new stake in shares of Wendy’s in the 4th quarter valued at $30,000. Hedge funds and other institutional investors own 85.96% of the company’s stock.

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.