Wendy’s (NASDAQ:WEN) Stock Price Down 9.7% After Analyst Downgrade

The Wendy’s Company (NASDAQ:WEN)’s share price was down 9.7% on Tuesday after BMO Capital Markets lowered their price target on the stock from $11.00 to $9.00. BMO Capital Markets currently has a market perform rating on the stock. Wendy’s traded as low as $6.74 and last traded at $6.7550. Approximately 7,423,873 shares traded hands during trading, a decline of 5% from the average daily volume of 7,842,782 shares. The stock had previously closed at $7.48.

A number of other equities research analysts have also commented on the company. Argus upgraded Wendy’s to a “hold” rating in a research report on Wednesday, January 21st. Barclays dropped 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 Tuesday. TD Cowen cut their price objective 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. Mizuho lowered their price target on shares of Wendy’s from $8.00 to $7.00 and set an “underperform” rating on the stock in a report on Friday, January 9th. Finally, The Goldman Sachs Group reduced their price objective on Wendy’s from $9.00 to $8.00 and set a “sell” rating for the company in a research note on Wednesday, December 17th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, sixteen have given a Hold rating and five have given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $9.57.

More Wendy’s News

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

• Positive Sentiment: Wendy’s launched a limited‑time Thin Mints Frosty Fusion and brought back the Thin Mints Frosty Swirl, plus broader Girl Scout booth partnerships — a seasonal promotion that can help traffic, AUVs and PR momentum during cookie season. The Iconic Duo Returns: Wendy’s Thin Mints Frosty Is Back
• Positive Sentiment: Promotional offers and limited‑time deals (e.g., $1 single, free chili) continue to push value messaging aimed at regaining traffic — a logical short‑term tactic to blunt comp declines. February deals
• Neutral Sentiment: Management frames closures as a strategic footprint optimization to focus on value and boost overall sales — this can improve long‑term margins but typically signals near‑term execution risk and lost revenue. Wendy’s to close hundreds restaurants
• Negative Sentiment: Multiple outlets report Wendy’s plans to close roughly 5% of U.S. stores (≈300 locations) after plunging sales — investors view large closures as evidence of material weakness in the core U.S. business and a catalyst for lower near‑term revenue and guidance revisions. Wendy’s to close roughly 300 US locations
• Negative Sentiment: Analyst downgrades and critical writeups (e.g., Seeking Alpha piece arguing Wendy’s is falling behind peers) are putting further downward pressure by highlighting market‑share loss, weak U.S. comps and execution risk. Wendy’s: Falling Sharply Behind In Fast Food Wars

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Atom Investors LP boosted its holdings in Wendy’s by 182.4% in the fourth quarter. Atom Investors LP now owns 177,565 shares of the restaurant operator’s stock valued at $1,479,000 after purchasing an additional 114,689 shares in the last quarter. Captrust Financial Advisors boosted its position in shares of Wendy’s by 28.6% in the 4th quarter. Captrust Financial Advisors now owns 144,561 shares of the restaurant operator’s stock valued at $1,204,000 after purchasing an additional 32,147 shares during the period. &PARTNERS acquired a new position in Wendy’s during the fourth quarter worth approximately $155,000. ExodusPoint Capital Management LP lifted its stake in Wendy’s by 147.2% in the fourth quarter. ExodusPoint Capital Management LP now owns 115,039 shares of the restaurant operator’s stock valued at $958,000 after buying an additional 68,506 shares during the last quarter. Finally, Militia Capital Partners LP acquired a new stake in shares of Wendy’s in the fourth quarter valued at approximately $150,000. Hedge funds and other institutional investors own 85.96% of the company’s stock.

Wendy’s Trading Down 9.0%

The business’s 50-day moving average price is $8.17 and its 200-day moving average price is $8.91. The firm has a market capitalization of $1.30 billion, a PE ratio of 8.01, a price-to-earnings-growth ratio of 2.10 and a beta of 0.38. The company has a debt-to-equity ratio of 28.77, a current ratio of 1.76 and a quick ratio of 1.74.

Wendy’s (NASDAQ:WEN) last issued its quarterly earnings results on Friday, February 13th. The restaurant operator reported $0.16 earnings per share for the quarter, topping analysts’ consensus estimates of $0.14 by $0.02. Wendy’s had a net margin of 7.58% and a return on equity of 145.93%. The firm had revenue of $439.60 million during the quarter, compared to analysts’ expectations of $537.11 million. During the same quarter in the prior year, the business earned $0.25 EPS. Wendy’s’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. As a group, analysts expect that The Wendy’s Company will post 0.99 earnings per share for the current fiscal year.

Wendy’s Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Monday, March 2nd will be given a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a yield of 8.2%. The ex-dividend date is Monday, March 2nd. Wendy’s’s dividend payout ratio (DPR) is 65.88%.

About Wendy’s

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.