The Wendy’s Company (NASDAQ:WEN) Receives Consensus Recommendation of “Reduce” from Analysts

The Wendy’s Company (NASDAQ:WEN) has earned a consensus recommendation of “Reduce” from the twenty-four ratings firms that are presently covering the company, MarketBeat reports. Six equities research analysts have rated the stock with a sell rating, thirteen have given a hold rating and five have assigned a buy rating to the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $8.5568.

WEN has been the topic of several analyst reports. JPMorgan Chase & Co. reiterated an “underweight” rating and set a $6.00 target price (down from $7.00) on shares of Wendy’s in a report on Monday, May 11th. Stifel Nicolaus set a $6.00 price target on Wendy’s in a research note on Thursday, April 30th. BMO Capital Markets reaffirmed a “market perform” rating on shares of Wendy’s in a research report on Wednesday, June 10th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Wendy’s in a research note on Monday, April 20th. Finally, Argus raised Wendy’s from a “hold” rating to a “buy” rating and set a $12.00 price objective for the company in a report on Wednesday, May 13th.

Wendy’s Stock Performance

Shares of WEN opened at $8.59 on Friday. The stock has a market capitalization of $1.64 billion, a price-to-earnings ratio of 11.01, a PEG ratio of 0.62 and a beta of 0.36. Wendy’s has a 12 month low of $6.07 and a 12 month high of $12.00. The firm has a fifty day simple moving average of $7.33 and a 200 day simple moving average of $7.55. The company has a current ratio of 1.83, a quick ratio of 1.81 and a debt-to-equity ratio of 29.25.

Wendy’s (NASDAQ:WEN) last issued its quarterly earnings results on Friday, May 8th. The restaurant operator reported $0.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.10 by $0.02. Wendy’s had a net margin of 6.77% and a return on equity of 136.46%. The firm had revenue of $432.30 million for the quarter, compared to analyst estimates of $518.03 million. During the same period in the previous year, the business earned $0.20 EPS. The company’s revenue was up 3.3% compared to the same quarter last year. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. Research analysts forecast that Wendy’s will post 0.58 EPS for the current fiscal year.

Wendy’s Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were given a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 6.5%. The ex-dividend date of this dividend was Monday, June 1st. Wendy’s’s dividend payout ratio is 71.79%.

Institutional Trading of Wendy’s

A number of large investors have recently added to or reduced their stakes in WEN. PVG Asset Management Corp acquired a new position in Wendy’s during the first quarter worth approximately $349,000. Empowered Funds LLC raised its position in shares of Wendy’s by 23.2% in the first quarter. Empowered Funds LLC now owns 76,790 shares of the restaurant operator’s stock valued at $534,000 after purchasing an additional 14,438 shares during the period. Bank of America Corp DE raised its position in shares of Wendy’s by 5.6% in the first quarter. Bank of America Corp DE now owns 4,493,752 shares of the restaurant operator’s stock valued at $31,232,000 after purchasing an additional 236,541 shares during the period. Janus Henderson Group PLC lifted its stake in shares of Wendy’s by 5.5% during the 1st quarter. Janus Henderson Group PLC now owns 927,506 shares of the restaurant operator’s stock worth $6,447,000 after buying an additional 48,009 shares during the last quarter. Finally, Bull Harbor Capital LLC acquired a new stake in shares of Wendy’s during the 1st quarter worth about $75,000. 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.