Wendy’s (NASDAQ:WEN) Reaches New 52-Week Low Following Analyst Downgrade

The Wendy’s Company (NASDAQ:WEN) shares hit a new 52-week low on Wednesday after Royal Bank Of Canada lowered their price target on the stock from $8.50 to $8.00. Royal Bank Of Canada currently has a sector perform rating on the stock. Wendy’s traded as low as $6.73 and last traded at $7.00, with a volume of 22510477 shares trading hands. The stock had previously closed at $7.48.

WEN has been the topic of a number of other reports. Weiss Ratings restated a “sell (d+)” rating on shares of Wendy’s in a research note on Wednesday, January 21st. Stifel Nicolaus set a $8.00 target price on shares of Wendy’s in a research report on Monday. TD Cowen lowered their price target on shares of Wendy’s from $9.00 to $6.00 and set a “hold” rating on the stock in a research note on Friday, February 13th. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $9.00 price target (down previously from $12.00) on shares of Wendy’s in a report on Wednesday, December 3rd. Finally, Stephens decreased their price objective on shares of Wendy’s from $9.00 to $8.00 and set an “equal weight” rating on the stock in a report on Friday, February 13th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, sixteen have assigned a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $9.39.

Key Stories Impacting Wendy’s

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

• Positive Sentiment: Trian / Nelson Peltz signaled increased engagement and that it sees Wendy’s as undervalued — a classic activist catalyst that can unlock value via strategic moves or a sale. Wendy’s Shares Heat Up on Trian Disclosure
• Positive Sentiment: High-profile media coverage and quotes from Peltz calling WEN “undervalued” have amplified investor attention and optimism about near-term upside or takeover interest. Wendy’s Stock Surges After Billionaire Nelson Peltz Calls It Undervalued
• Positive Sentiment: Derivative activity skewed bullish today — a surge in call buying and much higher-than-normal volume — which amplifies upward price momentum and signals speculative/trader conviction.
• Neutral Sentiment: Wendy’s issued a measured statement that the board regularly reviews strategy to maximize shareholder value; that neither confirms nor rules out specific actions. The Wendy’s Company Comments on Amended 13D Filing from Trian Partners
• Neutral Sentiment: Reports note Trian has talked with financing sources and partners about possible deals; this raises uncertainty — outcomes could range from a board settlement to an outright takeover or stake sale. Wendy’s shares soar 15% after billionaire Nelson Peltz says stock is undervalued
• Negative Sentiment: Underlying fundamentals are weak: recent soft guidance, lower revenues, and plans to close hundreds of U.S. locations have pressured sentiment and led to analyst downgrades/price-target cuts. Wendy’s stock sinks to six-year low after soft outlook
• Negative Sentiment: Earlier unusual put buying and multiple analyst downgrades indicate real downside risk if activist momentum fades or operational trends don’t improve.

Institutional Trading of Wendy’s

Several large investors have recently modified their holdings of WEN. Marshall Wace LLP acquired a new position in shares of Wendy’s in the third quarter worth $36,912,000. AQR Capital Management LLC increased its position in Wendy’s by 38.1% during the 4th quarter. AQR Capital Management LLC now owns 11,705,610 shares of the restaurant operator’s stock worth $97,508,000 after purchasing an additional 3,227,366 shares in the last quarter. Wells Fargo & Company MN increased its position in Wendy’s by 258.6% during the 4th quarter. Wells Fargo & Company MN now owns 4,224,648 shares of the restaurant operator’s stock worth $35,191,000 after purchasing an additional 3,046,517 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its stake in Wendy’s by 61.3% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 5,041,012 shares of the restaurant operator’s stock valued at $57,568,000 after purchasing an additional 1,915,465 shares during the last quarter. Finally, Norges Bank purchased a new position in Wendy’s in the 2nd quarter valued at about $18,929,000. 85.96% of the stock is currently owned by institutional investors and hedge funds.

Wendy’s Price Performance

The company has a market capitalization of $1.56 billion, a price-to-earnings ratio of 9.62, a PEG ratio of 1.97 and a beta of 0.38. The company has a current ratio of 1.76, a quick ratio of 1.74 and a debt-to-equity ratio of 28.77. The company’s 50 day simple moving average is $8.15 and its 200-day simple moving average is $8.89.

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

Wendy’s Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 2nd will be issued a $0.14 dividend. The ex-dividend date is Monday, March 2nd. This represents a $0.56 annualized dividend and a yield of 6.8%. Wendy’s’s payout ratio is 65.88%.

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.