Zacks Research Brokers Reduce Earnings Estimates for Wendy’s

The Wendy’s Company (NASDAQ:WEN) – Investment analysts at Zacks Research cut their FY2027 earnings per share estimates for Wendy’s in a research note issued on Friday, May 22nd. Zacks Research analyst Team now anticipates that the restaurant operator will earn $0.59 per share for the year, down from their previous estimate of $0.68. The consensus estimate for Wendy’s’ current full-year earnings is $0.58 per share. Zacks Research also issued estimates for Wendy’s’ FY2028 earnings at $0.68 EPS.

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

A number of other research firms also recently weighed in on WEN. BMO Capital Markets cut their price target on shares of Wendy’s from $9.00 to $8.00 and set a “market perform” rating on the stock in a research note on Monday, May 11th. Stifel Nicolaus set a $6.00 price target on shares of Wendy’s in a research note on Thursday, April 30th. Royal Bank Of Canada cut their price target on shares of Wendy’s from $8.50 to $8.00 and set a “sector perform” rating on the stock in a research note on Tuesday, February 17th. UBS Group cut their price target on shares of Wendy’s from $8.50 to $7.50 and set a “neutral” rating on the stock in a research note on Tuesday, February 17th. Finally, Wall Street Zen raised shares of Wendy’s from a “sell” rating to a “hold” rating in a research note on Saturday, May 16th. Five analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and six have given a Sell rating to the stock. According to data from MarketBeat.com, Wendy’s has a consensus rating of “Reduce” and a consensus price target of $8.56.

Wendy’s Stock Performance

NASDAQ:WEN opened at $7.36 on Wednesday. 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 company has a market cap of $1.40 billion, a P/E ratio of 9.44, a P/E/G ratio of 0.57 and a beta of 0.35. Wendy’s has a fifty-two week low of $6.37 and a fifty-two week high of $12.51. The firm’s 50 day moving average is $7.15 and its two-hundred day moving average is $7.77.

Hedge Funds Weigh In On Wendy’s

Hedge funds and other institutional investors have recently modified their holdings of the company. United Services Automobile Association purchased a new stake in Wendy’s during the 1st quarter worth $161,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Wendy’s by 1.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 639,085 shares of the restaurant operator’s stock worth $9,350,000 after purchasing an additional 11,072 shares during the period. Prudential Financial Inc. boosted its position in Wendy’s by 35.0% during the 2nd quarter. Prudential Financial Inc. now owns 15,687 shares of the restaurant operator’s stock worth $179,000 after purchasing an additional 4,067 shares during the period. Hsbc Holdings PLC boosted its position in Wendy’s by 136.9% during the 2nd quarter. Hsbc Holdings PLC now owns 27,776 shares of the restaurant operator’s stock worth $318,000 after purchasing an additional 16,053 shares during the period. Finally, M&T Bank Corp boosted its position in Wendy’s by 8.4% during the 2nd quarter. M&T Bank Corp now owns 16,987 shares of the restaurant operator’s stock worth $194,000 after purchasing an additional 1,310 shares during the period. 85.96% of the stock is owned by institutional investors and hedge funds.

Wendy’s Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be paid a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 7.6%. The ex-dividend date of this dividend is Monday, June 1st. 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.