Wendy’s (NASDAQ:WEN) Stock Rating Lowered by Wall Street Zen

Wendy’s (NASDAQ:WEN) was downgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a note issued to investors on Saturday.

Several other research analysts have also recently weighed in on the company. TD Cowen cut their price objective on Wendy’s from $9.00 to $6.00 and set a “hold” rating on the stock in a research report on Friday, February 13th. Stephens cut their price target on Wendy’s from $9.00 to $8.00 and set an “equal weight” rating for the company in a report on Friday, February 13th. Zacks Research upgraded shares of Wendy’s from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 11th. Evercore set a $8.00 target price on Wendy’s in a research note on Tuesday, February 17th. Finally, BMO Capital Markets lowered their price objective on shares of Wendy’s from $11.00 to $9.00 and set a “market perform” rating on the stock in a research report on Tuesday, February 17th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, sixteen have assigned a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, Wendy’s presently has an average rating of “Hold” and an average target price of $9.39.

Wendy’s Trading Down 2.8%

WEN opened at $8.09 on Friday. The company has a fifty day moving average price of $8.14 and a two-hundred day moving average price of $8.85. Wendy’s has a 1-year low of $6.73 and a 1-year high of $16.20. The company has a market cap of $1.54 billion, a P/E ratio of 9.52, a price-to-earnings-growth ratio of 2.26 and a beta of 0.38. The company has a current ratio of 1.76, a quick ratio of 1.74 and a debt-to-equity ratio of 28.77.

Wendy’s (NASDAQ:WEN) last posted 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. The business had revenue of $439.60 million for the quarter, compared to the consensus estimate of $537.11 million. Wendy’s had a return on equity of 145.93% and a net margin of 7.58%.The firm’s revenue for the quarter was down 5.5% on a year-over-year basis. During the same period in the prior year, the business earned $0.25 EPS. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. Analysts predict that Wendy’s will post 0.99 EPS for the current fiscal year.

Hedge Funds Weigh In On Wendy’s

Several institutional investors and hedge funds have recently modified their holdings of the stock. Invesco Ltd. boosted its stake in Wendy’s by 22.5% in the 4th quarter. Invesco Ltd. now owns 1,083,789 shares of the restaurant operator’s stock worth $9,028,000 after purchasing an additional 199,053 shares in the last quarter. Mercer Global Advisors Inc. ADV grew its holdings in shares of Wendy’s by 20.4% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 98,911 shares of the restaurant operator’s stock valued at $824,000 after buying an additional 16,725 shares during the last quarter. State of Tennessee Department of Treasury bought a new stake in shares of Wendy’s during the fourth quarter valued at approximately $279,000. EP Wealth Advisors LLC purchased a new position in Wendy’s in the 4th quarter worth approximately $135,000. Finally, NewEdge Advisors LLC raised its holdings in Wendy’s by 14.6% in the 4th quarter. NewEdge Advisors LLC now owns 12,898 shares of the restaurant operator’s stock worth $107,000 after acquiring an additional 1,647 shares during the last quarter. 85.96% of the stock is currently owned by institutional investors.

Key Wendy’s News

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

• Positive Sentiment: Nelson Peltz is reportedly again considering an outright purchase of Wendy’s, which elevates takeover premium speculation and can support a bid floor under the stock. Billionaire Nelson Peltz Once Again Considers Buying Wendy’s Outright
• Positive Sentiment: Unusually high options volume and reports of heavy call buying suggest some traders are positioning for an upside move or takeover event — a short‑term bullish technical signal. Traders Purchase High Volume of Wendy’s Call Options (NASDAQ:WEN)
• Positive Sentiment: Analyst/independent bullish takes (e.g., Seeking Alpha) argue the market is overreacting to a “reset” and recommend buying the dip — this can attract value investors given the stock’s depressed multiple. Wendy’s: The Market Hates The Reset – I’m Buying It
• Positive Sentiment: Menu promotions and tie‑ins (Thin Mints Frosty return, other seasonal sandwich rollouts) help traffic and same‑store sales in the near term and improve consumer engagement. Wendy’s teams up with Girl Scouts again and the new Thin Mints Frosty flavor is a game changer
• Positive Sentiment: Short-term promotions like a chili giveaway and the reintroduction of a favored seasonal sandwich can boost digital orders and traffic during promotional windows. Wendy’s Just Brought Back Our Favorite Seasonal Sandwich
• Neutral Sentiment: Local coverage (e.g., Wisconsin pieces) is informing customers about potential nearby closures — important operational detail but limited market impact unless closures are widespread. Wendy’s plans to close more locations. Are any in Wisconsin?
• Negative Sentiment: Wendy’s confirmed a major 2026 portfolio reset, closing up to ~6% of U.S. locations (hundreds of restaurants). That signals near‑term revenue headwinds and potential franchise disruption, pressuring growth expectations. Wendy’s closing up to 6% of US locations in first half of 2026
• Negative Sentiment: Several brokers (RBC, Truist, BMO) cut expectations or price targets and coverage notes; one report tied a nearly 10% intraday share drop to analyst downgrades — these hits directly pressure sentiment and valuations. Wendy’s (NASDAQ:WEN) Stock Price Down 9.7% Following Analyst Downgrade

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.