Wendy’s Co. (WEN) Rating Increased to Buy at Zacks Investment Research
Wendy’s Co. (NASDAQ:WEN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday. The brokerage presently has a $12.00 price target on the stock. Zacks Investment Research’s price target points to a potential upside of 12.04% from the company’s previous close.
According to Zacks, “Wendy’s sales initiatives like menu innovation and promotional offerings are driving growth. Also, increased investments in technology should quicken service and thus, result in increased customer count. Notably, reimaging of its restaurants is also expected to increase traffic and drive higher sales. Moreover, the company’s international business is poised to be a long-term growth driver. However, Wendy’s revenues have been declining year over year over the past few quarters. This downside reflects a reduction in the number of company-operated restaurants. Though transition to a franchise-based business model has been weighing on revenues in the near term, it would lower Wendy’s general and administrative expenses and in turn, boost earnings going forward. However, rising costs, incremental capital spending macroeconomic concerns along with near-term pressure on comps remain potent headwinds.”
Several other equities research analysts also recently weighed in on the company. Vetr downgraded Wendy’s from a “strong-buy” rating to a “buy” rating and set a $11.21 price target for the company. in a report on Monday, August 15th. RBC Capital Markets downgraded Wendy’s from an “outperform” rating to a “sector perform” rating and lowered their price target for the stock from $12.00 to $11.00 in a report on Tuesday, August 2nd. Argus reissued a “hold” rating on shares of Wendy’s in a report on Tuesday, August 23rd. Royal Bank Of Canada downgraded Wendy’s from an “outperform” rating to a “sector perform” rating and lowered their price target for the stock from $12.00 to $11.00 in a report on Tuesday, August 2nd. Finally, Stifel Nicolaus downgraded Wendy’s from an “outperform” rating to a “sector perform” rating and lowered their price target for the stock from $12.00 to $11.00 in a report on Tuesday, August 2nd. One research analyst has rated the stock with a sell rating, nine have given a hold rating and eight have assigned a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average target price of $12.69.
Shares of Wendy’s (NASDAQ:WEN) opened at 10.71 on Tuesday. Wendy’s has a 12-month low of $8.43 and a 12-month high of $11.38. The company has a 50-day moving average of $10.30 and a 200 day moving average of $10.29. The stock has a market capitalization of $2.80 billion, a price-to-earnings ratio of 20.64 and a beta of 0.83.
Wendy’s (NASDAQ:WEN) last issued its quarterly earnings results on Wednesday, August 10th. The company reported $0.10 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.01. The business earned $382.70 million during the quarter, compared to the consensus estimate of $366.92 million. Wendy’s had a return on equity of 15.94% and a net margin of 8.59%. The company’s quarterly revenue was down 21.8% on a year-over-year basis. During the same quarter last year, the company earned $0.08 earnings per share. Analysts predict that Wendy’s will post $0.40 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Stockholders of record on Thursday, September 1st were given a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a dividend yield of 2.24%. The ex-dividend date was Tuesday, August 30th. Wendy’s’s dividend payout ratio (DPR) is presently 45.28%.
Several hedge funds have recently bought and sold shares of the stock. TIAA CREF Investment Management LLC boosted its stake in Wendy’s by 8.6% in the first quarter. TIAA CREF Investment Management LLC now owns 325,768 shares of the company’s stock worth $3,548,000 after buying an additional 25,672 shares during the period. Teachers Advisors Inc. raised its stake in shares of Wendy’s by 3.2% in the first quarter. Teachers Advisors Inc. now owns 200,749 shares of the company’s stock worth $2,186,000 after buying an additional 6,135 shares in the last quarter. Stratos Wealth Partners LTD. raised its stake in shares of Wendy’s by 11.9% in the first quarter. Stratos Wealth Partners LTD. now owns 38,501 shares of the company’s stock worth $419,000 after buying an additional 4,098 shares in the last quarter. Rehmann Capital Advisory Group purchased a new stake in shares of Wendy’s during the first quarter worth about $142,000. Finally, BlackRock Inc. raised its stake in shares of Wendy’s by 18.6% in the first quarter. BlackRock Inc. now owns 99,001 shares of the company’s stock worth $1,078,000 after buying an additional 15,545 shares in the last quarter. Institutional investors and hedge funds own 81.02% of the company’s stock.
Wendy’s Company Profile
The Wendy’s Company is the parent company of its subsidiary holding company Wendy’s Restaurants, LLC (Wendy’s Restaurants). Wendy’s Restaurants is the parent company of Wendy’s International, LLC (Wendy’s), which is the owner and franchisor of the Wendy’s restaurant system in the United States. Wendy’s is the restaurant company specializing in the hamburger sandwich segment.
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