Wendy’s (NASDAQ:WEN) Stock Price Down 5.7% – What’s Next?

The Wendy’s Company (NASDAQ:WEN) dropped 5.7% during mid-day trading on Monday . The company traded as low as $8.07 and last traded at $8.11. 3,136,996 shares traded hands during mid-day trading, a decline of 76% from the average session volume of 12,914,210 shares. The stock had previously closed at $8.60.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. Wall Street Zen upgraded shares of Wendy’s from a “sell” rating to a “hold” rating in a research report on Saturday, May 16th. BMO Capital Markets reaffirmed a “market perform” rating on shares of Wendy’s in a report on Wednesday, June 10th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Wendy’s in a research note on Monday, April 20th. Citigroup raised their price target on Wendy’s from $7.25 to $7.75 and gave the company a “neutral” rating in a report on Monday, May 11th. Finally, KeyCorp restated a “sector weight” rating on shares of Wendy’s in a research report on Wednesday, June 10th. Five research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and six have given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Reduce” and an average price target of $8.56.

Wendy’s Stock Performance

The firm’s 50 day simple moving average is $7.33 and its 200 day simple moving average is $7.54. The firm has a market cap of $1.52 billion, a PE ratio of 10.22, a PEG ratio of 0.62 and a beta of 0.36. The company has a current ratio of 1.83, a quick ratio of 1.81 and a debt-to-equity ratio of 29.25.

Wendy’s (NASDAQ:WEN) last issued its earnings results on Friday, May 8th. The restaurant operator reported $0.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.10 by $0.02. The firm had revenue of $432.30 million for the quarter, compared to analysts’ expectations of $518.03 million. Wendy’s had a return on equity of 136.46% and a net margin of 6.77%.The business’s revenue was up 3.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.20 earnings per share. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. On average, research analysts forecast that The Wendy’s Company will post 0.58 EPS for the current fiscal year.

Wendy’s Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were issued a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 7.0%. The ex-dividend date of this dividend was Monday, June 1st. Wendy’s’s dividend payout ratio is 71.79%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of WEN. Marshall Wace LLP purchased a new stake in Wendy’s during the third quarter valued at $36,912,000. Healthcare of Ontario Pension Plan Trust Fund purchased a new position in shares of Wendy’s in the 1st quarter worth $26,062,000. AQR Capital Management LLC grew its stake in shares of Wendy’s by 38.1% in the 4th quarter. AQR Capital Management LLC now owns 11,705,610 shares of the restaurant operator’s stock worth $97,508,000 after buying an additional 3,227,366 shares in the last quarter. Wells Fargo & Company MN increased its holdings in shares of Wendy’s by 258.6% in the 4th quarter. Wells Fargo & Company MN now owns 4,224,648 shares of the restaurant operator’s stock worth $35,191,000 after buying an additional 3,046,517 shares during the last quarter. Finally, Renaissance Technologies LLC increased its holdings in shares of Wendy’s by 2,612.4% in the 1st quarter. Renaissance Technologies LLC now owns 2,340,282 shares of the restaurant operator’s stock worth $16,265,000 after buying an additional 2,254,000 shares during the last quarter. 85.96% of the stock is owned by hedge funds and other institutional investors.

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.