Citigroup Issues Positive Forecast for Wendy’s (NASDAQ:WEN) Stock Price

Wendy’s (NASDAQ:WEN) had its price target hoisted by Citigroup from $6.75 to $8.00 in a research report report published on Friday morning,Benzinga reports. Citigroup currently has a neutral rating on the restaurant operator’s stock.

Several other research firms have also issued reports on WEN. Morgan Stanley set a $5.50 target price on Wendy’s in a report on Monday, August 10th. UBS Group dropped their price target on Wendy’s from $8.00 to $6.50 and set a “neutral” rating for the company in a research note on Monday, October 26th. Stephens upped their price objective on shares of Wendy’s from $7.00 to $8.00 and gave the stock an “equal weight” rating in a research report on Friday. TD Cowen reiterated a “hold” rating and set a $6.00 price objective on shares of Wendy’s in a research note on Wednesday, October 28th. Finally, Argus lowered shares of Wendy’s from a “buy” rating to a “sell” rating in a report on Thursday, October 29th. One analyst has rated the stock with a Buy rating, eleven have issued a Hold rating and six have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and an average price target of $7.56.

Wendy’s Price Performance

Shares of NASDAQ WEN traded up $0.21 during midday trading on Friday, reaching $8.15. The company’s stock had a trading volume of 10,028,709 shares, compared to its average volume of 7,081,420. The company has a debt-to-equity ratio of 27.95, a quick ratio of 1.88 and a current ratio of 1.90. The company has a market cap of $1.55 billion, a P/E ratio of 15.98, a P/E/G ratio of 1.33 and a beta of 0.37. The business’s 50 day moving average price is $6.95 and its two-hundred day moving average price is $7.36. Wendy’s has a fifty-two week low of $5.94 and a fifty-two week high of $10.12.

Wendy’s (NASDAQ:WEN) last issued its quarterly earnings results on Thursday, November 5th. The restaurant operator reported $0.13 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.09 by $0.04. Wendy’s had a return on equity of 115.31% and a net margin of 5.72%. The business had revenue of $435.62 million for the quarter, compared to the consensus estimate of $531.28 million. During the same quarter in the prior year, the business posted $0.24 earnings per share. The firm’s quarterly revenue was down .5% compared to the same quarter last year. On average, analysts forecast that Wendy’s will post 0.50 EPS for the current fiscal year.

Wendy’s Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be paid a $0.07 dividend. The ex-dividend date is Tuesday, December 1st. This represents a $0.28 annualized dividend and a dividend yield of 3.4%. Wendy’s’s dividend payout ratio (DPR) is presently 42.42%.

Institutional Trading of Wendy’s

Institutional investors and hedge funds have recently modified their holdings of the business. Maryland State Retirement & Pension System lifted its holdings in shares of Wendy’s by 55.1% during the third quarter. Maryland State Retirement & Pension System now owns 35,159 shares of the restaurant operator’s stock worth $224,000 after purchasing an additional 12,494 shares during the period. Pavion Blue Capital LLC bought a new stake in Wendy’s during the 3rd quarter worth approximately $64,000. AMG National Trust Bank purchased a new stake in shares of Wendy’s in the third quarter valued at about $155,000. Lido Advisors LLC bought a new stake in shares of Wendy’s during the 3rd quarter worth $94,000. Finally, Fulcrum Asset Management LLP bought a new position in Wendy’s during the third quarter valued at $283,000. 85.96% of the stock is currently owned by institutional investors.

Key Stories Impacting Wendy’s

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

• Positive Sentiment: Wendy’s reported third-quarter adjusted earnings of $0.13 per share, above analysts’ estimates, and launched its multi-year “Dave’s Way” plan to improve traffic, market share and restaurant profitability. Quarterly results and strategy
• Positive Sentiment: The company is refreshing its menu for 2027 and tailoring breakfast offerings by location after tests found that scaling back breakfast in some locations improved profitability. These moves could help the turnaround if they attract customers and lift margins. Menu refresh
• Positive Sentiment: Wendy’s is considering acquiring as many as 163 Meritage Hospitality Group restaurants, which could give it more control over locations and support its franchise portfolio strategy, though the deal is not final. Potential restaurant acquisition
• Neutral Sentiment: Citigroup and Stephens raised their price targets to $8, while keeping neutral and equal-weight ratings, respectively. Both targets are slightly below the cited share price, suggesting limited near-term upside in their views.
• Negative Sentiment: Despite the earnings beat, quarterly earnings were below the year-ago level and revenue declined year over year, underscoring the traffic and sales challenges the turnaround must address.
• Negative Sentiment: The board rejected Trian’s $7.35-per-share buyout proposal as undervaluing Wendy’s and adopted a limited-duration “poison pill.” The offer was below the cited recent share price, but blocking it leaves investors reliant on management’s turnaround and may prolong activist-related uncertainty. Buyout proposal rejection

About Wendy’s

The Wendy’s Company (NASDAQ: WEN) operates and franchises quick-service restaurants under the Wendy’s brand. Its restaurants are known for hamburgers made with fresh, never-frozen beef, along with chicken sandwiches, salads, fries, breakfast items, desserts, and beverages.

Founded by Dave Thomas in 1969, Wendy’s has grown into an international restaurant chain with locations primarily in the United States and Canada, as well as select markets in other countries. The company’s restaurant system includes both company-operated and franchised locations.

In addition to its restaurant operations, Wendy’s supports customers through digital ordering, delivery, loyalty programs, and mobile applications.