Wendy’s (NASDAQ:WEN) Reaches New 1-Year Low – Here’s Why

Shares of The Wendy’s Company (NASDAQ:WEN) hit a new 52-week low during trading on Monday . The company traded as low as $6.36 and last traded at $6.4050, with a volume of 4509255 shares trading hands. The stock had previously closed at $6.80.

Analysts Set New Price Targets

Several equities research analysts have issued reports on WEN shares. JPMorgan Chase & Co. restated an “underweight” rating and set a $6.00 target price (down from $7.00) on shares of Wendy’s in a research report on Monday, May 11th. Wall Street Zen upgraded Wendy’s from a “sell” rating to a “hold” rating in a research note on Saturday, May 16th. TD Cowen reissued a “hold” rating and set a $6.00 price objective on shares of Wendy’s in a report on Tuesday, May 12th. BMO Capital Markets restated a “market perform” rating on shares of Wendy’s in a research note on Wednesday, June 10th. Finally, Stifel Nicolaus set a $6.00 price target on Wendy’s in a research report on Thursday, April 30th. Five investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and six have given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Reduce” and a consensus price target of $8.56.

Wendy’s Trading Down 8.1%

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 firm’s fifty day moving average is $7.16 and its two-hundred day moving average is $7.58. The firm has a market cap of $1.19 billion, a P/E ratio of 8.03, a PEG ratio of 0.49 and a beta of 0.38.

Wendy’s (NASDAQ:WEN) last posted its earnings results on Friday, May 8th. The restaurant operator reported $0.12 EPS for the quarter, topping the consensus estimate of $0.10 by $0.02. The firm had revenue of $432.30 million during the quarter, compared to analysts’ expectations of $518.03 million. Wendy’s had a net margin of 6.77% and a return on equity of 136.46%. The company’s quarterly revenue was up 3.3% compared to the same quarter last year. During the same period last year, the company posted $0.20 EPS. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. Analysts predict that The Wendy’s Company will post 0.58 earnings per share for the current fiscal year.

Wendy’s Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were given a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 9.0%. The ex-dividend date of this dividend was Monday, June 1st. Wendy’s’s payout ratio is presently 71.79%.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in WEN. AQR Capital Management LLC grew its stake in Wendy’s by 30.1% in the second quarter. AQR Capital Management LLC now owns 13,843,438 shares of the restaurant operator’s stock worth $158,092,000 after purchasing an additional 3,205,269 shares during the period. Charles Schwab Investment Management Inc. lifted its position in Wendy’s by 3.3% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 7,091,847 shares of the restaurant operator’s stock valued at $59,075,000 after buying an additional 227,023 shares during the period. Morgan Stanley lifted its position in Wendy’s by 5.8% during the fourth quarter. Morgan Stanley now owns 6,549,066 shares of the restaurant operator’s stock valued at $54,554,000 after buying an additional 357,814 shares during the period. State Street Corp boosted its holdings in shares of Wendy’s by 1.9% during the 4th quarter. State Street Corp now owns 5,446,335 shares of the restaurant operator’s stock valued at $45,368,000 after buying an additional 102,084 shares in the last quarter. Finally, Bank of America Corp DE grew its position in shares of Wendy’s by 5.6% in the 1st quarter. Bank of America Corp DE now owns 4,493,752 shares of the restaurant operator’s stock worth $31,232,000 after buying an additional 236,541 shares during the period. Institutional investors own 85.96% of the company’s stock.

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.