Wendy’s (NASDAQ:WEN) Rating Increased to Buy at Argus

Wendy’s (NASDAQ:WEN) was upgraded by equities researchers at Argus from a “hold” rating to a “buy” rating in a report issued on Wednesday. The brokerage currently has a $12.00 price objective on the restaurant operator’s stock. Argus’ target price would suggest a potential upside of 51.90% from the company’s current price.

WEN has been the subject of a number of other reports. Citigroup increased their price objective on shares of Wendy’s from $7.25 to $7.75 and gave the stock a “neutral” rating in a research note on Monday. Truist Financial cut their target price on shares of Wendy’s from $11.00 to $10.00 and set a “buy” rating for the company in a report on Tuesday, February 17th. Deutsche Bank Aktiengesellschaft set a $8.00 target price on Wendy’s in a report on Tuesday, February 17th. Evercore set a $8.00 price objective on shares of Wendy’s in a research note on Tuesday, February 17th. Finally, UBS Group cut their price objective on shares of Wendy’s from $8.50 to $7.50 and set a “neutral” rating on the stock in a research report on Tuesday, February 17th. Five analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and six have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Wendy’s currently has a consensus rating of “Reduce” and a consensus target price of $8.56.

Wendy’s Trading Up 16.9%

Shares of NASDAQ:WEN opened at $7.90 on Wednesday. The stock’s 50-day simple moving average is $7.03 and its two-hundred day simple moving average is $7.83. The stock has a market capitalization of $1.50 billion, a price-to-earnings ratio of 10.13, a PEG ratio of 1.91 and a beta of 0.35. Wendy’s has a 52-week low of $6.37 and a 52-week high of $12.51. The company has a debt-to-equity ratio of 29.25, a quick ratio of 1.81 and a current ratio of 1.83.

Wendy’s (NASDAQ:WEN) last released its quarterly earnings results on Friday, May 8th. The restaurant operator reported $0.12 EPS for the quarter, beating the consensus estimate of $0.10 by $0.02. The firm had revenue of $432.30 million during the quarter, compared to analyst estimates of $518.03 million. Wendy’s had a net margin of 6.77% and a return on equity of 136.46%. The business’s revenue for the quarter was up 3.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.20 EPS. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. Analysts expect that Wendy’s will post 0.58 EPS for the current year.

Institutional Trading of Wendy’s

Several institutional investors and hedge funds have recently made changes to their positions in the business. Cassaday & Co Wealth Management LLC purchased a new stake in shares of Wendy’s during the first quarter valued at $30,000. Principal Financial Group Inc. increased its stake in Wendy’s by 2.1% in the 1st quarter. Principal Financial Group Inc. now owns 766,351 shares of the restaurant operator’s stock worth $5,326,000 after buying an additional 15,919 shares during the period. International Assets Investment Management LLC lifted its holdings in Wendy’s by 18.0% during the 1st quarter. International Assets Investment Management LLC now owns 61,425 shares of the restaurant operator’s stock valued at $424,000 after buying an additional 9,365 shares in the last quarter. Fifth Third Bancorp lifted its holdings in Wendy’s by 702.8% during the 1st quarter. Fifth Third Bancorp now owns 30,741 shares of the restaurant operator’s stock valued at $214,000 after buying an additional 26,912 shares in the last quarter. Finally, Barnett & Company Inc. boosted its position in Wendy’s by 10.7% in the 1st quarter. Barnett & Company Inc. now owns 16,600 shares of the restaurant operator’s stock valued at $115,000 after buying an additional 1,600 shares during the period. 85.96% of the stock is currently owned by institutional investors.

Trending Headlines about Wendy’s

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

• Positive Sentiment: Reports that Nelson Peltz’s Trian is pursuing funding for a potential take-private deal have boosted investor hopes for a cash buyout at a premium. A Real Biggie Deal: Wendy’s Serves Up a Juicy Buyout Arbitrage
• Positive Sentiment: Wendy’s turnaround plan, including store closures, menu upgrades, and value offerings, gives investors a possible standalone recovery story even if a deal does not happen.
• Neutral Sentiment: Options activity surged unusually, showing heightened speculation and uncertainty around the stock rather than a clear fundamental shift.
• Neutral Sentiment: TD Cowen and JPMorgan reiterated cautious views on the stock, which underscores lingering concerns about Wendy’s business performance and valuation.
• Negative Sentiment: Recent Q1 results showed weaker U.S. same-store sales, margin pressure, and ongoing traffic challenges, reminding investors that the core business is still under strain.

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.