Traders Purchase High Volume of Wendy’s Call Options (NASDAQ:WEN)

The Wendy’s Company (NASDAQ:WEN) saw unusually large options trading activity on Wednesday. Investors acquired 25,431 call options on the company. This is an increase of 79% compared to the average volume of 14,245 call options.

Analysts Set New Price Targets

WEN has been the subject of a number of recent analyst reports. Deutsche Bank Aktiengesellschaft set a $8.00 price objective on shares of Wendy’s in a research report on Tuesday. Barclays reduced their target price on Wendy’s from $9.00 to $8.00 and set an “equal weight” rating for the company in a report on Tuesday. Mizuho decreased their price objective on shares of Wendy’s from $8.00 to $7.00 and set an “underperform” rating for the company in a report on Friday, January 9th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Wendy’s in a research note on Wednesday, January 21st. Finally, Argus raised shares of Wendy’s to a “hold” rating in a research report on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, sixteen have given a Hold rating and five have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $9.39.

Wendy’s Stock Performance

Shares of WEN stock opened at $8.32 on Friday. The company has a debt-to-equity ratio of 28.77, a quick ratio of 1.74 and a current ratio of 1.76. Wendy’s has a 52 week low of $6.73 and a 52 week high of $16.20. The company’s 50 day moving average price is $8.15 and its two-hundred day moving average price is $8.88. The company has a market capitalization of $1.58 billion, a P/E ratio of 9.79, a price-to-earnings-growth ratio of 2.28 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, topping 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 return on equity of 145.93% and a net margin of 7.58%.The firm’s revenue was down 5.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.25 earnings per share. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. On average, analysts expect that Wendy’s will post 0.99 earnings per share for the current fiscal year.

Wendy’s Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 2nd will be paid a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 6.7%. The ex-dividend date is Monday, March 2nd. Wendy’s’s dividend payout ratio (DPR) is 65.88%.

More Wendy’s News

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

• Positive Sentiment: Trian/Nelson Peltz signaled in an amended 13D that he sees Wendy’s as undervalued and is weighing options including selling his stake or pursuing an acquisition—this activist spotlight drove buying interest and a sharp intraday pop. Billionaire Nelson Peltz Once Again Considers Buying Wendy’s Outright
• Positive Sentiment: Heavy call-option activity and unusual options volume point to speculative/leveraged bullish positioning tied to the activist chatter—this amplified upside momentum during the day. Wendy’s Sees Unusually High Options Volume (NASDAQ:WEN)
• Positive Sentiment: Several outlets reported the stock rebound and investor interest after Peltz’s filing, increasing visibility among institutional and retail traders. Wendy’s Stock Surges After Billionaire Nelson Peltz Calls It Undervalued
• Neutral Sentiment: The Wendy’s Company issued a public comment on Trian’s amended 13D noting its board regularly reviews strategic options to maximize shareholder value—this is a measured corporate response but does not commit to a deal. The Wendy’s Company Comments on Amended 13D Filing from Trian Partners
• Neutral Sentiment: Marketing tie-ins (Thin Mints Frosty return and new flavor releases) may support traffic/brand buzz but are unlikely to materially change near-term fundamentals. Wendy’s teams up with Girl Scouts again and the new Thin Mints Frosty flavor is a game changer
• Negative Sentiment: Wendy’s confirmed plans that could include closing a meaningful number of U.S. restaurants (reports say up to ~6%/hundreds of locations) as it shifts to value-focused strategies—this raises near-term revenue and franchise profitability concerns. Wendy’s closing up to 6% of US locations in first half of 2026
• Negative Sentiment: Multiple analysts cut ratings/price targets (RBC to $8 and others, plus Truist/BMO notes) and the stock faced a notable pullback after downgrades—analyst skepticism about growth and store closures pressured the share price. Royal Bank Of Canada Lowers Wendy’s (NASDAQ:WEN) Price Target to $8.00
• Negative Sentiment: Coverage noted the stock hit a new 12-month low after analyst downgrades, highlighting persistent fundamental concerns despite the activist interest. Wendy’s (NASDAQ:WEN) Hits New 12-Month Low Following Analyst Downgrade

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. United Services Automobile Association acquired a new stake in Wendy’s in the 1st quarter valued at about $161,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Wendy’s by 1.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 639,085 shares of the restaurant operator’s stock valued at $9,350,000 after purchasing an additional 11,072 shares in the last quarter. Vanguard Personalized Indexing Management LLC grew its position in shares of Wendy’s by 5.6% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 24,038 shares of the restaurant operator’s stock valued at $275,000 after purchasing an additional 1,276 shares during the last quarter. Sequoia Financial Advisors LLC purchased a new position in shares of Wendy’s during the 2nd quarter worth approximately $267,000. Finally, International Assets Investment Management LLC acquired a new position in shares of Wendy’s during the 2nd quarter worth approximately $448,000. Institutional investors and hedge funds 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.