Wendys Co (NASDAQ:WEN) – SunTrust Banks issued their Q1 2019 earnings estimates for shares of Wendys in a report released on Thursday, Zacks Investment Research reports. SunTrust Banks analyst J. Bartlett expects that the restaurant operator will post earnings of $0.14 per share for the quarter. SunTrust Banks also issued estimates for Wendys’ Q2 2019 earnings at $0.20 EPS, Q3 2019 earnings at $0.18 EPS, Q4 2019 earnings at $0.19 EPS and FY2019 earnings at $0.71 EPS.
Wendys (NASDAQ:WEN) last issued its earnings results on Wednesday, February 21st. The restaurant operator reported $0.11 earnings per share for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.01). The business had revenue of $309.25 million for the quarter. Wendys had a return on equity of 21.24% and a net margin of 15.86%. The firm’s revenue for the quarter was down .2% on a year-over-year basis. During the same period in the previous year, the company earned $0.08 EPS.
A number of other equities analysts have also commented on the stock. BidaskClub upgraded shares of Wendys from a “strong sell” rating to a “sell” rating in a research report on Friday, March 9th. Longbow Research raised shares of Wendys from a “neutral” rating to a “buy” rating in a research note on Thursday, March 8th. Argus reaffirmed a “buy” rating and issued a $16.60 target price (down from $19.00) on shares of Wendys in a research note on Wednesday, March 7th. Citigroup raised their target price on shares of Wendys from $17.00 to $19.00 and gave the company a “buy” rating in a research note on Monday, March 5th. Finally, UBS Group raised shares of Wendys from a “sell” rating to a “neutral” rating and set a $17.00 target price on the stock in a research note on Thursday, March 1st. Three research analysts have rated the stock with a sell rating, nine have assigned a hold rating and ten have issued a buy rating to the company’s stock. The company presently has an average rating of “Hold” and a consensus price target of $17.40.
Wendys (NASDAQ WEN) traded up $0.01 during mid-day trading on Monday, hitting $17.01. 1,517,268 shares of the stock were exchanged, compared to its average volume of 4,310,705. The company has a debt-to-equity ratio of 4.75, a current ratio of 1.78 and a quick ratio of 1.77. Wendys has a one year low of $13.03 and a one year high of $17.66. The company has a market capitalization of $4,153.84, a price-to-earnings ratio of 21.77, a P/E/G ratio of 1.88 and a beta of 0.81.
Wendys declared that its Board of Directors has authorized a share buyback program on Thursday, February 15th that allows the company to repurchase $175.00 million in shares. This repurchase authorization allows the restaurant operator to reacquire shares of its stock through open market purchases. Shares repurchase programs are generally an indication that the company’s board believes its shares are undervalued.
The business also recently declared a quarterly dividend, which will be paid on Thursday, March 15th. Investors of record on Thursday, March 1st will be issued a $0.085 dividend. The ex-dividend date is Wednesday, February 28th. This represents a $0.34 annualized dividend and a yield of 2.00%. This is a boost from Wendys’s previous quarterly dividend of $0.07. Wendys’s payout ratio is 43.59%.
In other news, major shareholder Trian Partners Parallel Fund I sold 5,000,000 shares of the business’s stock in a transaction on Monday, February 26th. The shares were sold at an average price of $16.50, for a total transaction of $82,500,000.00. Following the sale, the insider now owns 5,409,971 shares in the company, valued at approximately $89,264,521.50. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CFO Gunther Plosch bought 5,000 shares of the company’s stock in a transaction dated Wednesday, March 7th. The shares were acquired at an average price of $16.62 per share, for a total transaction of $83,100.00. Following the acquisition, the chief financial officer now owns 25,000 shares in the company, valued at approximately $415,500. The disclosure for this purchase can be found here. Insiders own 26.50% of the company’s stock.
A number of institutional investors have recently made changes to their positions in WEN. Victory Capital Management Inc. raised its position in Wendys by 26.8% in the 4th quarter. Victory Capital Management Inc. now owns 7,122,035 shares of the restaurant operator’s stock worth $116,944,000 after buying an additional 1,507,055 shares during the last quarter. Renaissance Technologies LLC raised its position in Wendys by 70.1% in the 4th quarter. Renaissance Technologies LLC now owns 2,794,882 shares of the restaurant operator’s stock worth $45,892,000 after buying an additional 1,152,200 shares during the last quarter. FMR LLC raised its position in Wendys by 1,023.5% in the 2nd quarter. FMR LLC now owns 799,897 shares of the restaurant operator’s stock worth $12,406,000 after buying an additional 728,697 shares during the last quarter. Canada Pension Plan Investment Board raised its position in Wendys by 92.4% in the 3rd quarter. Canada Pension Plan Investment Board now owns 1,434,000 shares of the restaurant operator’s stock worth $22,270,000 after buying an additional 688,700 shares during the last quarter. Finally, Wells Fargo & Company MN raised its position in Wendys by 7.4% in the 4th quarter. Wells Fargo & Company MN now owns 8,547,151 shares of the restaurant operator’s stock worth $140,344,000 after buying an additional 587,113 shares during the last quarter. Institutional investors own 80.57% of the company’s stock.
The Wendy’s Company is the parent company of subsidiary holding company Wendy’s Restaurants, LLC (Wendy’s Restaurants). Wendy’s Restaurants is the parent company of Wendy’s International, LLC (Wendy’s), which is the owner and franchisor of the Wendy’s restaurant system in the United States. Wendy’s is a restaurant company specializing in the hamburger sandwich segment.
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