Wendy’s (NASDAQ:WEN) Downgraded by Wall Street Zen to “Sell”

Wendy’s (NASDAQ:WEN) was downgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a note issued to investors on Saturday.

Several other brokerages have also issued reports on WEN. Evercore set a $8.00 price target on shares of Wendy’s in a research note on Tuesday. The Goldman Sachs Group cut their price target on Wendy’s from $8.00 to $7.00 and set a “sell” rating for the company in a report on Tuesday. TD Cowen cut their price objective 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. Mizuho reduced their price objective on Wendy’s from $8.00 to $7.00 and set an “underperform” rating for the company in a report on Friday, January 9th. Finally, Argus upgraded Wendy’s to a “hold” rating in a research note 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 assigned a Hold rating and five have given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $9.39.

Wendy’s Price Performance

NASDAQ WEN opened at $8.09 on Friday. Wendy’s has a 52-week low of $6.73 and a 52-week high of $16.20. The company has a debt-to-equity ratio of 28.77, a quick ratio of 1.74 and a current ratio of 1.76. The business has a 50 day simple moving average of $8.14 and a 200 day simple moving average of $8.87. The stock has a market cap of $1.54 billion, a price-to-earnings ratio of 9.52, a PEG ratio of 2.32 and a beta of 0.38.

Wendy’s (NASDAQ:WEN) last announced its earnings results on Friday, February 13th. The restaurant operator reported $0.16 earnings per share for the quarter, topping analysts’ consensus estimates of $0.14 by $0.02. The firm had revenue of $439.60 million during 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% compared to the same quarter last year. During the same period in the prior year, the business earned $0.25 EPS. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. Analysts anticipate that Wendy’s will post 0.99 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Wendy’s

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. United Services Automobile Association acquired a new position in shares of Wendy’s in the 1st quarter valued at approximately $161,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Wendy’s by 1.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 639,085 shares of the restaurant operator’s stock worth $9,350,000 after acquiring an additional 11,072 shares during the last quarter. Vanguard Personalized Indexing Management LLC increased its holdings in Wendy’s by 5.6% in the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 24,038 shares of the restaurant operator’s stock worth $275,000 after purchasing an additional 1,276 shares in the last quarter. Chicago Partners Investment Group LLC raised its position in Wendy’s by 56.2% in the second quarter. Chicago Partners Investment Group LLC now owns 20,068 shares of the restaurant operator’s stock valued at $227,000 after purchasing an additional 7,224 shares during the last quarter. Finally, Stephens Inc. AR boosted its position in Wendy’s by 25.6% during the 2nd quarter. Stephens Inc. AR now owns 19,265 shares of the restaurant operator’s stock worth $220,000 after buying an additional 3,926 shares during the period. 85.96% of the stock is owned by institutional investors and hedge funds.

Key Wendy’s News

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

• Positive Sentiment: Nelson Peltz is reportedly again considering an outright purchase of Wendy’s, which elevates takeover premium speculation and can support a bid floor under the stock. Billionaire Nelson Peltz Once Again Considers Buying Wendy’s Outright
• Positive Sentiment: Unusually high options volume and reports of heavy call buying suggest some traders are positioning for an upside move or takeover event — a short‑term bullish technical signal. Traders Purchase High Volume of Wendy’s Call Options (NASDAQ:WEN)
• Positive Sentiment: Analyst/independent bullish takes (e.g., Seeking Alpha) argue the market is overreacting to a “reset” and recommend buying the dip — this can attract value investors given the stock’s depressed multiple. Wendy’s: The Market Hates The Reset – I’m Buying It
• Positive Sentiment: Menu promotions and tie‑ins (Thin Mints Frosty return, other seasonal sandwich rollouts) help traffic and same‑store sales in the near term and improve consumer engagement. Wendy’s teams up with Girl Scouts again and the new Thin Mints Frosty flavor is a game changer
• Positive Sentiment: Short-term promotions like a chili giveaway and the reintroduction of a favored seasonal sandwich can boost digital orders and traffic during promotional windows. Wendy’s Just Brought Back Our Favorite Seasonal Sandwich
• Neutral Sentiment: Local coverage (e.g., Wisconsin pieces) is informing customers about potential nearby closures — important operational detail but limited market impact unless closures are widespread. Wendy’s plans to close more locations. Are any in Wisconsin?
• Negative Sentiment: Wendy’s confirmed a major 2026 portfolio reset, closing up to ~6% of U.S. locations (hundreds of restaurants). That signals near‑term revenue headwinds and potential franchise disruption, pressuring growth expectations. Wendy’s closing up to 6% of US locations in first half of 2026
• Negative Sentiment: Several brokers (RBC, Truist, BMO) cut expectations or price targets and coverage notes; one report tied a nearly 10% intraday share drop to analyst downgrades — these hits directly pressure sentiment and valuations. Wendy’s (NASDAQ:WEN) Stock Price Down 9.7% Following Analyst Downgrade

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.