Wendy’s (NASDAQ:WEN) Announces Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Wendy’s (NASDAQ:WEN) released its quarterly earnings results on Friday. The restaurant operator reported $0.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.20 by $0.04, Zacks reports. Wendy’s had a return on equity of 103.07% and a net margin of 8.63%.The business had revenue of $442.50 million during the quarter, compared to analyst estimates of $535.75 million. During the same quarter in the previous year, the company posted $0.25 earnings per share. Wendy’s’s revenue for the quarter was down 3.0% on a year-over-year basis. Wendy’s updated its FY 2025 guidance to 0.820-0.890 EPS.

Wendy’s Trading Up 1.6%

WEN stock traded up $0.14 during mid-day trading on Friday, reaching $8.97. 20,313,598 shares of the stock traded hands, compared to its average volume of 6,216,762. Wendy’s has a one year low of $8.39 and a one year high of $19.97. The stock has a market capitalization of $1.71 billion, a PE ratio of 9.34, a PEG ratio of 1.63 and a beta of 0.38. The company has a debt-to-equity ratio of 28.74, a quick ratio of 1.43 and a current ratio of 1.45. The business has a 50-day moving average price of $9.30 and a two-hundred day moving average price of $10.61.

Institutional Trading of Wendy’s

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. United Services Automobile Association purchased a new stake in shares of Wendy’s during the 1st quarter worth about $161,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Wendy’s by 1.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 639,085 shares of the restaurant operator’s stock worth $9,350,000 after purchasing an additional 11,072 shares in the last quarter. Prudential Financial Inc. grew its holdings in Wendy’s by 35.0% in the second quarter. Prudential Financial Inc. now owns 15,687 shares of the restaurant operator’s stock valued at $179,000 after purchasing an additional 4,067 shares during the period. Hsbc Holdings PLC increased its position in shares of Wendy’s by 136.9% in the second quarter. Hsbc Holdings PLC now owns 27,776 shares of the restaurant operator’s stock valued at $318,000 after buying an additional 16,053 shares in the last quarter. Finally, M&T Bank Corp increased its position in shares of Wendy’s by 8.4% in the second quarter. M&T Bank Corp now owns 16,987 shares of the restaurant operator’s stock valued at $194,000 after buying an additional 1,310 shares in the last quarter. 85.96% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on WEN shares. BTIG Research restated a “neutral” rating on shares of Wendy’s in a research report on Monday, September 15th. Morgan Stanley set a $9.00 target price on Wendy’s in a report on Tuesday, October 21st. Stifel Nicolaus dropped their price target on Wendy’s from $12.00 to $11.00 and set a “hold” rating for the company in a research note on Friday, October 31st. Citigroup raised Wendy’s from a “hold” rating to a “strong-buy” rating in a research note on Friday, August 8th. Finally, Sanford C. Bernstein set a $9.00 price objective on Wendy’s in a report on Wednesday, October 22nd. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, fourteen have given a Hold rating and five have given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $11.40.

About Wendy’s

The Wendy’s Co engages in operating, developing, and franchising a system of quick-service restaurants. It operates through the following segments: Wendy’s U.S., Wendy’s International, and Global Real Estate and Development. The Wendy’s U.S. segment includes the operation and franchising of Wendy’s restaurants in the U.S.