Wendy’s (NASDAQ:WEN) Hits New 52-Week Low – Here’s Why

Shares of The Wendy’s Company (NASDAQ:WEN) reached a new 52-week low during mid-day trading on Monday . The company traded as low as $6.59 and last traded at $6.6050, with a volume of 3012651 shares. The stock had previously closed at $6.70.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on WEN shares. Barclays cut their price target on Wendy’s from $9.00 to $8.00 and set an “equal weight” rating on the stock in a report on Tuesday, February 17th. Morgan Stanley reissued an “underweight” rating and issued a $7.00 target price on shares of Wendy’s in a research report on Monday, February 16th. UBS Group cut their target price on Wendy’s from $8.50 to $7.50 and set a “neutral” rating on the stock in a research note on Tuesday, February 17th. Royal Bank Of Canada reduced their price target on Wendy’s from $8.50 to $8.00 and set a “sector perform” rating for the company in a research report on Tuesday, February 17th. Finally, JPMorgan Chase & Co. decreased their price target on shares of Wendy’s from $9.00 to $7.00 and set a “neutral” rating for the company in a research note on Monday, February 23rd. Four research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and five have assigned a Sell rating to the company’s stock. According to MarketBeat, Wendy’s currently has a consensus rating of “Reduce” and an average price target of $8.46.

Wendy’s Stock Performance

The company has a market capitalization of $1.25 billion, a price-to-earnings ratio of 7.69, a P/E/G ratio of 1.90 and a beta of 0.35. The stock’s 50 day moving average price is $7.12 and its 200 day moving average price is $7.92. 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 released its earnings results on Friday, February 13th. The restaurant operator reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.14 by $0.02. Wendy’s had a return on equity of 145.93% and a net margin of 7.58%.The business had revenue of $439.60 million for the quarter, compared to analyst estimates of $537.11 million. During the same quarter in the prior year, the company posted $0.25 earnings per share. Wendy’s’s revenue was down 5.5% on a year-over-year basis. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. Analysts expect that The Wendy’s Company will post 0.57 earnings per share for the current year.

Wendy’s Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 16th. Stockholders of record on Monday, March 2nd were issued a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 8.6%. The ex-dividend date of this dividend was Monday, March 2nd. Wendy’s’s dividend payout ratio is presently 65.88%.

Hedge Funds Weigh In On Wendy’s

Institutional investors have recently added to or reduced their stakes in the company. Versant Capital Management Inc lifted its stake in Wendy’s by 19,693.8% in the third quarter. Versant Capital Management Inc now owns 3,167 shares of the restaurant operator’s stock valued at $29,000 after acquiring an additional 3,151 shares during the last quarter. MassMutual Private Wealth & Trust FSB increased its stake in shares of Wendy’s by 205.0% during the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 3,257 shares of the restaurant operator’s stock worth $30,000 after purchasing an additional 2,189 shares during the last quarter. Hilton Head Capital Partners LLC bought a new stake in shares of Wendy’s in the 4th quarter valued at about $30,000. Fifth Third Bancorp lifted its stake in Wendy’s by 161.0% in the 4th quarter. Fifth Third Bancorp now owns 3,829 shares of the restaurant operator’s stock valued at $32,000 after purchasing an additional 2,362 shares during the last quarter. Finally, SJS Investment Consulting Inc. acquired a new stake in Wendy’s in the 1st quarter valued at about $32,000. 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.