The Wendy’s Company (NASDAQ:WEN) Receives Consensus Recommendation of “Reduce” from Brokerages

Shares of The Wendy’s Company (NASDAQ:WEN) have earned an average rating of “Reduce” from the twenty-one brokerages that are currently covering the firm, MarketBeat reports. Six research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and two have issued a buy rating on the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $7.7632.

Several equities analysts have issued reports on the stock. Stifel Nicolaus set a $6.00 target price on shares of Wendy’s in a research note on Thursday, April 30th. KeyCorp reiterated a “sector weight” rating on shares of Wendy’s in a research note on Tuesday, August 11th. Weiss Ratings reissued a “sell (d+)” rating on shares of Wendy’s in a report on Friday, July 17th. JPMorgan Chase & Co. restated an “underweight” rating and set a $6.00 price objective (down from $7.00) on shares of Wendy’s in a research report on Monday, May 11th. Finally, UBS Group restated a “neutral” rating and issued a $8.00 target price on shares of Wendy’s in a report on Monday, August 10th.

Key Headlines Impacting Wendy’s

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

• Positive Sentiment: A Wendy’s employee reportedly reached Yale after receiving financial support from company bosses, providing favorable publicity for the brand and its workplace culture, although the story is unlikely to materially affect WEN’s valuation. Wendy’s worker heads to Yale after his bosses paid his way through college
• Neutral Sentiment: Coverage of Wendy Williams’ public appearances and Wendy’s restaurant design history is unrelated to The Wendy’s Company and should have no meaningful impact on WEN shares. Wendy Williams pleads for freedom in rare public sighting Wendy’s iconic 80s sunrooms
• Negative Sentiment: Zacks Research reduced its EPS forecasts across several periods, including fiscal 2026 earnings to $0.53 from $0.57, fiscal 2027 earnings to $0.54 from $0.59, and fiscal 2028 earnings to $0.57 from $0.68. The revisions signal weaker expected profitability and could pressure investor sentiment. Zacks Research earnings estimates for Wendy’s
• Negative Sentiment: A Chicago woman alleges that a Wendy’s cheeseburger caused a serious foodborne illness requiring hospitalization and nearly $93,000 in medical bills. The lawsuit remains an allegation, but it creates potential legal, reputational and food-safety risks for WEN. Woman alleges Wendy’s meal caused foodborne illness

Hedge Funds Weigh In On Wendy’s

A number of institutional investors and hedge funds have recently modified their holdings of WEN. M&T Bank Corp raised its holdings in Wendy’s by 8.4% in the 2nd quarter. M&T Bank Corp now owns 16,987 shares of the restaurant operator’s stock worth $194,000 after purchasing an additional 1,310 shares during the period. Brown Financial Advisors lifted its position in Wendy’s by 4.7% during the second quarter. Brown Financial Advisors now owns 29,908 shares of the restaurant operator’s stock valued at $342,000 after purchasing an additional 1,339 shares in the last quarter. Bank of Nova Scotia grew its holdings in Wendy’s by 3.4% during the third quarter. Bank of Nova Scotia now owns 40,993 shares of the restaurant operator’s stock valued at $375,000 after purchasing an additional 1,343 shares during the period. Barnett & Company Inc. grew its holdings in Wendy’s by 10.7% during the first quarter. Barnett & Company Inc. now owns 16,600 shares of the restaurant operator’s stock valued at $115,000 after purchasing an additional 1,600 shares during the period. Finally, NewEdge Advisors LLC increased its position in Wendy’s by 14.6% in the fourth quarter. NewEdge Advisors LLC now owns 12,898 shares of the restaurant operator’s stock worth $107,000 after buying an additional 1,647 shares in the last quarter. 85.96% of the stock is currently owned by hedge funds and other institutional investors.

Wendy’s Stock Performance

Shares of NASDAQ:WEN opened at $9.01 on Monday. The company has a market cap of $1.72 billion, a P/E ratio of 13.65, a PEG ratio of 0.72 and a beta of 0.37. The company has a debt-to-equity ratio of 27.95, a current ratio of 1.90 and a quick ratio of 1.88. Wendy’s has a 1 year low of $6.07 and a 1 year high of $10.72. The stock’s fifty day moving average price is $7.72 and its 200-day moving average price is $7.43.

Wendy’s (NASDAQ:WEN) last released its quarterly earnings data on Friday, August 7th. The restaurant operator reported $0.18 EPS for the quarter, beating the consensus estimate of $0.16 by $0.02. Wendy’s had a return on equity of 115.31% and a net margin of 5.72%.The company had revenue of $570.57 million for the quarter, compared to analysts’ expectations of $557.13 million. During the same period last year, the firm posted $0.29 earnings per share. Wendy’s’s revenue was up 1.8% compared to the same quarter last year. Sell-side analysts expect that Wendy’s will post 0.52 earnings per share for the current year.

Wendy’s Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend is Tuesday, September 1st. Wendy’s’s dividend payout ratio is presently 84.85%.

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.