The Wendy’s Company (NASDAQ:WEN) Given Consensus Recommendation of “Reduce” by Brokerages

The Wendy’s Company (NASDAQ:WEN) has been given an average rating of “Reduce” by the twenty-three brokerages that are covering the firm, MarketBeat reports. Six investment analysts have rated the stock with a sell rating, twelve have issued a hold rating and five have assigned a buy rating to the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $8.5568.

Several brokerages recently issued reports on WEN. Deutsche Bank Aktiengesellschaft set a $8.00 target price on shares of Wendy’s in a research report on Tuesday, February 17th. Citigroup upped their target price on shares of Wendy’s from $7.25 to $7.75 and gave the stock a “neutral” rating in a research report on Monday, May 11th. The Goldman Sachs Group cut their target price on shares of Wendy’s from $8.00 to $7.00 and set a “sell” rating for the company in a research report on Tuesday, February 17th. Truist Financial cut their target price on shares of Wendy’s from $11.00 to $10.00 and set a “buy” rating for the company in a research report on Tuesday, February 17th. Finally, Evercore set a $8.00 target price on shares of Wendy’s in a research report on Tuesday, February 17th.

Wendy’s News Summary

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

• Positive Sentiment: Wendy’s appointed Bob Wright as president and CEO, effective May 21. Wright is a restaurant industry veteran and previously led Potbelly, which could be viewed as a move to bring in experienced leadership to stabilize the business and drive a turnaround. Wendy’s Appoints Robert D. “Bob” Wright as President and Chief Executive Officer
• Positive Sentiment: Several reports noted that Wright’s background includes overseeing Potbelly’s sale, and the leadership change comes as activist interest and privatization speculation continue, which may support hopes for strategic action to unlock value. Wendy’s names restaurant industry veteran Wright as new CEO
• Neutral Sentiment: Wendy’s is also leaning into marketing promotions, including a Wendy look-alike contest in New York City, which may help brand visibility but is unlikely to be a major near-term driver by itself. Wendy’s Celebrates Its Redhead Roots with NYC Look-alike Contest on World Redhead Day
• Negative Sentiment: Coverage from Barron’s highlighted that Wright inherits a tough turnaround, with the chain still dealing with weak sales, declining traffic, and the need to revive its brand, underscoring the operational challenges ahead for Wendy’s. Wendy’s New CEO Has a Tough Job. Here’s What Needs to Be Done.

Hedge Funds Weigh In On Wendy’s

Hedge funds and other institutional investors have recently modified their holdings of the company. Alps Advisors Inc. lifted its stake in shares of Wendy’s by 71.7% in the 3rd quarter. Alps Advisors Inc. now owns 634,304 shares of the restaurant operator’s stock valued at $5,810,000 after purchasing an additional 264,905 shares during the period. Quinn Opportunity Partners LLC lifted its stake in shares of Wendy’s by 382.8% in the 3rd quarter. Quinn Opportunity Partners LLC now owns 1,216,811 shares of the restaurant operator’s stock valued at $11,146,000 after purchasing an additional 964,771 shares during the period. Public Sector Pension Investment Board acquired a new position in shares of Wendy’s in the 3rd quarter valued at $5,651,000. Ruffer LLP acquired a new position in shares of Wendy’s in the 4th quarter valued at $3,194,000. Finally, Principal Financial Group Inc. lifted its stake in shares of Wendy’s by 107.3% in the 3rd quarter. Principal Financial Group Inc. now owns 759,620 shares of the restaurant operator’s stock valued at $6,958,000 after purchasing an additional 393,105 shares during the period. 85.96% of the stock is owned by institutional investors.

Wendy’s Stock Down 4.6%

Wendy’s stock opened at $7.75 on Friday. Wendy’s has a 1-year low of $6.37 and a 1-year high of $12.51. The firm has a market capitalization of $1.48 billion, a price-to-earnings ratio of 9.94, a P/E/G ratio of 0.59 and a beta of 0.35. The company has a current ratio of 1.83, a quick ratio of 1.81 and a debt-to-equity ratio of 29.25. The firm has a 50 day simple moving average of $7.11 and a 200 day simple moving average of $7.80.

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

Wendy’s Announces Dividend

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

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.