Wendy’s Target of Unusually High Options Trading (NASDAQ:WEN)

The Wendy’s Company (NASDAQ:WEN) was the target of some unusual options trading activity on Wednesday. Stock traders acquired 25,431 call options on the stock. This is an increase of 79% compared to the typical volume of 14,245 call options.

Wendy’s Stock Performance

Shares of WEN traded up $1.20 during midday trading on Wednesday, reaching $8.20. 12,759,914 shares of the stock were exchanged, compared to its average volume of 8,535,540. The stock’s 50 day simple moving average is $8.15 and its 200 day simple moving average is $8.89. The company has a market cap of $1.56 billion, a P/E ratio of 9.64, a PEG ratio of 2.10 and a beta of 0.38. Wendy’s has a twelve month low of $6.73 and a twelve month high of $16.20. The company has a quick ratio of 1.74, a current ratio of 1.76 and a debt-to-equity ratio of 28.77.

Wendy’s (NASDAQ:WEN) last issued its quarterly earnings results on Friday, February 13th. The restaurant operator reported $0.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.14 by $0.02. The business had revenue of $439.60 million for the quarter, compared to the consensus estimate of $537.11 million. Wendy’s had a return on equity of 145.93% and a net margin of 7.58%.The firm’s quarterly revenue was down 5.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.25 earnings per share. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. On average, sell-side analysts expect that Wendy’s will post 0.99 earnings per share for the current year.

Wendy’s Dividend Announcement

The firm 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 dividend of $0.14 per share. The ex-dividend date of this dividend is Monday, March 2nd. This represents a $0.56 annualized dividend and a yield of 6.8%. Wendy’s’s payout ratio is presently 65.88%.

Wendy’s News Summary

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

• Positive Sentiment: Trian/Peltz says Wendy’s is undervalued, sparking a bounce as investors price in activist support and potential upside from strategic changes. Wendy’s Stock Rebounds From Multi-Year Low After Peltz Says Shares Are Undervalued
• Neutral Sentiment: MarketBeat argues WEN is cheap and could see a long-term rebound, but notes big execution risk: high leverage, declining cash flow and heavy short interest mean recovery depends on visible comp- and margin improvement. Wendy’s Stock Is Cheap, But Can the Turnaround Actually Work?
• Neutral Sentiment: New limited‑time items (Thin Mints Frosty Fusion) and promotions provide marketing tailwinds and community engagement but are unlikely to offset broad traffic/margin headwinds on their own. The Iconic Duo Returns: Wendy’s Thin Mints Frosty Is Back
• Negative Sentiment: Wendy’s issued a soft outlook and warned of continued weakness in U.S. comps; that guidance pushed the stock to multi‑year lows as investors repriced growth and margin expectations. Wendy’s Stock Sinks To Six-Year Low After Soft Outlook
• Negative Sentiment: The company plans to close roughly 5% of U.S. locations (~300 stores) to tighten its footprint after plunging sales — a short‑term revenue headwind that management frames as necessary to improve long‑term profitability. Wendy’s to close hundreds restaurants as company looks focus value boost sales
• Negative Sentiment: Analysts have lowered price targets and ratings (RBC, BMO, Truist among others), and unusual options activity (a large spike in put buying) signals elevated downside hedging/speculation, increasing near‑term volatility and downside risk.
• Negative Sentiment: Multiple bearish commentary pieces (Seeking Alpha, The Motley Fool coverage) highlight Wendy’s widening gap vs. competitors on traffic and breakfast rollout struggles—reinforcing the view that the turnaround may take longer than investors hope. Wendy’s: Struggles In A McValue World

Wall Street Analysts Forecast Growth

Several research firms have issued reports on WEN. Argus raised shares of Wendy’s to a “hold” rating in a research report on Wednesday, January 21st. Weiss Ratings reiterated a “sell (d+)” rating on shares of Wendy’s in a report on Wednesday, January 21st. BMO Capital Markets lowered their price target on Wendy’s from $11.00 to $9.00 and set a “market perform” rating on the stock in a research report on Tuesday. Evercore set a $8.00 price objective on Wendy’s in a research report on Tuesday. Finally, TD Cowen decreased their target price on Wendy’s from $9.00 to $6.00 and set a “hold” rating on the stock in a report on Friday, February 13th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, sixteen have given a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $9.39.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Elevation Point Wealth Partners LLC acquired a new stake in Wendy’s during the 2nd quarter valued at approximately $25,000. Investors Research Corp acquired a new stake in shares of Wendy’s during the third quarter worth $27,000. Versant Capital Management Inc raised its stake in Wendy’s by 19,693.8% during the third quarter. Versant Capital Management Inc now owns 3,167 shares of the restaurant operator’s stock worth $29,000 after buying an additional 3,151 shares during the last quarter. MassMutual Private Wealth & Trust FSB lifted its holdings in Wendy’s by 205.0% in the third quarter. MassMutual Private Wealth & Trust FSB now owns 3,257 shares of the restaurant operator’s stock valued at $30,000 after buying an additional 2,189 shares during the period. Finally, Hilton Head Capital Partners LLC bought a new stake in Wendy’s during the fourth quarter valued at $30,000. 85.96% of the stock is currently owned by institutional investors.

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.