Wendy’s (NASDAQ:WEN) Trading Down 4.3% – Here’s Why

The Wendy’s Company (NASDAQ:WEN)’s share price was down 4.3% during mid-day trading on Thursday . The company traded as low as $7.86 and last traded at $7.8860. 1,639,519 shares traded hands during mid-day trading, a decline of 86% from the average daily volume of 12,047,795 shares. The stock had previously closed at $8.24.

Analysts Set New Price Targets

Several research analysts have recently issued reports on WEN shares. BMO Capital Markets reaffirmed a “market perform” rating on shares of Wendy’s in a research note on Monday, August 10th. Stephens restated an “equal weight” rating and set a $8.00 target price on shares of Wendy’s in a report on Tuesday, June 23rd. UBS Group restated a “neutral” rating and set a $8.00 target price on shares of Wendy’s in a research report on Monday, August 10th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Wendy’s in a report on Friday, July 17th. Finally, Citigroup raised their price objective on shares of Wendy’s from $8.00 to $8.25 and gave the stock a “neutral” rating in a research note on Tuesday. Two research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and six have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Wendy’s has a consensus rating of “Reduce” and a consensus price target of $7.78.

Wendy’s Stock Performance

The company has a debt-to-equity ratio of 27.95, a current ratio of 1.90 and a quick ratio of 1.88. The stock has a 50-day moving average price of $7.98 and a 200-day moving average price of $7.47. The firm has a market capitalization of $1.50 billion, a PE ratio of 11.92, a price-to-earnings-growth ratio of 0.84 and a beta of 0.39.

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. The company had revenue of $570.57 million for the quarter, compared to the consensus estimate of $557.13 million. Wendy’s had a return on equity of 115.31% and a net margin of 5.72%.Wendy’s’s revenue for the quarter was up 1.8% compared to the same quarter last year. During the same period in the previous year, the business earned $0.29 EPS. On average, research analysts expect that The Wendy’s Company will post 0.5 EPS for the current fiscal year.

Wendy’s Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be issued a $0.07 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.28 annualized dividend and a yield of 3.6%. Wendy’s’s dividend payout ratio is currently 42.42%.

Hedge Funds Weigh In On Wendy’s

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Trian Fund Management L.P. purchased a new stake in Wendy’s in the 2nd quarter worth approximately $252,583,000. BlackRock Inc. grew its holdings in shares of Wendy’s by 21.1% during the 2nd quarter. BlackRock Inc. now owns 26,314,724 shares of the restaurant operator’s stock valued at $218,149,000 after acquiring an additional 4,576,075 shares in the last quarter. Marshall Wace LLP acquired a new position in shares of Wendy’s in the third quarter worth $36,912,000. Healthcare of Ontario Pension Plan Trust Fund acquired a new position in shares of Wendy’s in the first quarter worth $26,062,000. Finally, AQR Capital Management LLC raised its holdings in shares of Wendy’s by 38.1% during the fourth quarter. AQR Capital Management LLC now owns 11,705,610 shares of the restaurant operator’s stock worth $97,508,000 after acquiring an additional 3,227,366 shares in the last quarter. 85.96% of the stock is currently owned by institutional investors and hedge funds.

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.