Wendy’s (NASDAQ:WEN) Stock Gets Price Target Cut from Citigroup

Wendy’s (NASDAQ:WEN) had its price objective trimmed by Citigroup from $8.25 to $6.75 in a research report report published on Friday,Benzinga reports. The brokerage currently has a neutral rating on the restaurant operator’s stock.

Several other brokerages also recently commented on WEN. BMO Capital Markets restated a “market perform” rating on shares of Wendy’s in a research report on Monday, August 10th. Morgan Stanley set a $5.50 price objective on shares of Wendy’s in a research report on Monday, August 10th. Weiss Ratings reissued a “sell (d+)” rating on shares of Wendy’s in a research note on Thursday, October 15th. UBS Group reissued a “neutral” rating and set a $8.00 target price on shares of Wendy’s in a research note on Monday, August 10th. Finally, Guggenheim restated a “neutral” rating on shares of Wendy’s in a report on Tuesday, September 15th. Two analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat, Wendy’s presently has an average rating of “Reduce” and an average target price of $7.52.

Wendy’s Stock Performance

Shares of WEN opened at $6.22 on Friday. The business’s 50-day moving average price is $7.25 and its 200 day moving average price is $7.34. The stock has a market capitalization of $1.19 billion, a P/E ratio of 9.42, a P/E/G ratio of 0.64 and a beta of 0.40. Wendy’s has a 1-year low of $5.94 and a 1-year high of $10.12. The company has a current ratio of 1.90, a quick ratio of 1.88 and a debt-to-equity ratio of 27.95.

Wendy’s (NASDAQ:WEN) last posted its quarterly earnings data on Friday, August 7th. The restaurant operator reported $0.18 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $570.57 million for the quarter, compared to the consensus estimate of $557.13 million. During the same quarter in the previous year, the company earned $0.29 EPS. The business’s revenue for the quarter was up 1.8% compared to the same quarter last year. Analysts expect that Wendy’s will post 0.49 earnings per share for the current year.

Wendy’s Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were issued a $0.07 dividend. The ex-dividend date was Tuesday, September 1st. This represents a $0.28 dividend on an annualized basis and a dividend yield of 4.5%. This is a negative change from Wendy’s’s previous quarterly dividend of $0.14. Wendy’s’s dividend payout ratio is currently 42.42%.

Institutional Trading of Wendy’s

A number of hedge funds have recently made changes to their positions in the stock. Sterling Capital Management LLC grew its holdings in shares of Wendy’s by 630.5% during the 3rd quarter. Sterling Capital Management LLC now owns 5,245 shares of the restaurant operator’s stock valued at $33,000 after acquiring an additional 4,527 shares in the last quarter. Nisa Investment Advisors LLC increased its stake in shares of Wendy’s by 217.9% in the third quarter. Nisa Investment Advisors LLC now owns 77,879 shares of the restaurant operator’s stock worth $497,000 after acquiring an additional 53,384 shares during the last quarter. Atlas Brown Inc. increased its stake in shares of Wendy’s by 28.6% in the third quarter. Atlas Brown Inc. now owns 45,000 shares of the restaurant operator’s stock worth $287,000 after acquiring an additional 10,000 shares during the last quarter. Vista Investment Partners LLC raised its holdings in shares of Wendy’s by 35.5% during the third quarter. Vista Investment Partners LLC now owns 28,182 shares of the restaurant operator’s stock worth $180,000 after acquiring an additional 7,390 shares in the last quarter. Finally, Envestnet Asset Management Inc. raised its holdings in shares of Wendy’s by 62.6% during the second quarter. Envestnet Asset Management Inc. now owns 74,030 shares of the restaurant operator’s stock worth $614,000 after acquiring an additional 28,508 shares in the last quarter. 85.96% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Wendy’s

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

• Positive Sentiment: Wendy’s is emphasizing affordability with a $7.99 Dave’s Single combo, part of an effort to win back price-sensitive customers and improve sales trends. Wendy’s hopes to win back customers with $7.99 Dave’s Single combo
• Positive Sentiment: The company’s broader shift toward value could support customer traffic and competitiveness if promotions translate into stronger comparable-store sales. Wendy’s turns its attention to value
• Positive Sentiment: A potential buyer has emerged for some bankrupt Wendy’s restaurants, which could preserve operating locations and reduce disruption associated with franchisee failures. Potential buyer emerges for bankrupt Wendy’s restaurants
• Neutral Sentiment: Meritage plans to sell 42 Wendy’s restaurants for $18.6 million. The transaction may improve ownership of those locations, but the sale also highlights ongoing portfolio and franchisee restructuring. Meritage to sell 42 Wendy’s restaurants
• Negative Sentiment: Citigroup lowered its price target from $8.25 to $6.75 and kept a neutral rating, signaling reduced confidence in Wendy’s near-term upside. Citigroup lowers Wendy’s price target
• Negative Sentiment: Closures remain a major concern: three additional Georgia locations and 41 restaurants tied to a bankrupt franchisee are closing, while nearly 70 Florida locations have reportedly shut over the past two years. The closures point to weak unit economics and franchisee stress, potentially reducing Wendy’s revenue base and growth prospects. Three more Wendy’s locations close in Georgia

About Wendy’s

The Wendy’s Company (NASDAQ: WEN) operates and franchises quick-service restaurants under the Wendy’s brand. Its restaurants are known for hamburgers made with fresh, never-frozen beef, along with chicken sandwiches, salads, fries, breakfast items, desserts, and beverages.

Founded by Dave Thomas in 1969, Wendy’s has grown into an international restaurant chain with locations primarily in the United States and Canada, as well as select markets in other countries. The company’s restaurant system includes both company-operated and franchised locations.

In addition to its restaurant operations, Wendy’s supports customers through digital ordering, delivery, loyalty programs, and mobile applications.