Zacks Research Has Bearish Outlook for Wendy’s Q2 Earnings

The Wendy’s Company (NASDAQ:WEN) – Research analysts at Zacks Research cut their Q2 2026 EPS estimates for shares of Wendy’s in a note issued to investors on Friday, May 22nd. Zacks Research analyst Team now anticipates that the restaurant operator will earn $0.17 per share for the quarter, down from their previous forecast of $0.18. The consensus estimate for Wendy’s’ current full-year earnings is $0.58 per share. Zacks Research also issued estimates for Wendy’s’ Q4 2026 earnings at $0.13 EPS, FY2026 earnings at $0.57 EPS, Q1 2027 earnings at $0.11 EPS, Q2 2027 earnings at $0.18 EPS, Q3 2027 earnings at $0.15 EPS, Q4 2027 earnings at $0.15 EPS and Q1 2028 earnings at $0.14 EPS.

WEN has been the topic of a number of other reports. Evercore set a $8.00 price objective on Wendy’s in a research report on Tuesday, February 17th. Truist Financial cut their price objective on Wendy’s from $11.00 to $10.00 and set a “buy” rating on the stock in a research report on Tuesday, February 17th. TD Cowen reiterated a “hold” rating and issued a $6.00 price objective on shares of Wendy’s in a research report on Tuesday, May 12th. Citigroup lifted their price objective on Wendy’s from $7.25 to $7.75 and gave the stock a “neutral” rating in a research report on Monday, May 11th. Finally, Barclays cut their price objective on Wendy’s from $9.00 to $8.00 and set an “equal weight” rating on the stock in a research report on Tuesday, February 17th. Five analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and six have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Reduce” and an average price target of $8.56.

Wendy’s Stock Performance

Shares of WEN opened at $7.81 on Monday. The stock has a market capitalization of $1.49 billion, a P/E ratio of 10.01, a PEG ratio of 0.56 and a beta of 0.35. The company has a quick ratio of 1.81, a current ratio of 1.83 and a debt-to-equity ratio of 29.25. The firm has a fifty day simple moving average of $7.14 and a two-hundred day simple moving average of $7.79. Wendy’s has a twelve month low of $6.37 and a twelve month high of $12.51.

Wendy’s (NASDAQ:WEN) last announced its quarterly earnings results on Friday, May 8th. The restaurant operator reported $0.12 earnings per share for the quarter, beating the consensus estimate of $0.10 by $0.02. The business had revenue of $432.30 million during the quarter, compared to analysts’ expectations of $518.03 million. Wendy’s had a net margin of 6.77% and a return on equity of 136.46%. The firm’s revenue for the quarter was up 3.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.20 EPS. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS.

Wendy’s Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 1st will be given a dividend of $0.14 per share. The ex-dividend date is Monday, June 1st. This represents a $0.56 annualized dividend and a dividend yield of 7.2%. Wendy’s’s payout ratio is currently 71.79%.

Institutional Investors Weigh In On Wendy’s

Several hedge funds have recently made changes to their positions in the company. Hilton Head Capital Partners LLC purchased a new position in Wendy’s during the fourth quarter valued at $30,000. Cassaday & Co Wealth Management LLC purchased a new position in Wendy’s during the first quarter valued at $30,000. Fifth Third Bancorp raised its stake in Wendy’s by 161.0% during the fourth quarter. Fifth Third Bancorp now owns 3,829 shares of the restaurant operator’s stock valued at $32,000 after buying an additional 2,362 shares during the last quarter. SJS Investment Consulting Inc. purchased a new position in Wendy’s during the first quarter valued at $32,000. Finally, Gen Wealth Partners Inc purchased a new position in Wendy’s during the fourth quarter valued at $33,000. 85.96% of the stock is currently owned by institutional investors.

Wendy’s News Summary

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

• Negative Sentiment: Zacks Research cut earnings estimates for Wendy’s (WEN) across multiple future periods, including lower forecasts for FY2026 and several 2027/2028 quarters. Lower profit expectations can pressure the stock because they suggest slower earnings growth ahead.
• Negative Sentiment: A separate headline raised concerns about Wendy’s closing hundreds of restaurants across the U.S. in 2026, which could signal weaker unit economics or a restructuring effort, both of which can weigh on investor sentiment. Article Title
• Neutral Sentiment: One consumer-focused article about Wendy’s Vanilla Frosty disappearing from the menu is unlikely to move the stock much on its own, but it highlights ongoing menu rotation and product-availability chatter around the brand. Article Title
• Neutral Sentiment: A market recap noted that Wendy’s shares traded up alongside Cracker Barrel, but it did not point to a specific company catalyst. Article Title

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.