Wendy’s (NASDAQ:WEN) Stock Price Target Raised at Citigroup

Wendy’s (NASDAQ:WEN) had its price target raised by investment analysts at Citigroup from $6.75 to $8.00 in a research note issued on Friday, Benzinga reports. The firm currently has a “neutral” rating on the restaurant operator’s stock. Citigroup‘s price target would indicate a potential downside of 1.84% from the company’s previous close.

Other equities analysts have also issued research reports about the company. Stephens lifted their price objective on Wendy’s from $7.00 to $8.00 and gave the company an “equal weight” rating in a research note on Friday. Seaport Research Partners initiated coverage on Wendy’s in a report on Wednesday, September 16th. They issued a “neutral” rating for the company. Argus downgraded Wendy’s from a “buy” rating to a “sell” rating in a research note on Thursday, October 29th. BMO Capital Markets reaffirmed a “market perform” rating on shares of Wendy’s in a report on Friday. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Wendy’s in a report on Thursday, October 15th. One investment analyst has rated the stock with a Buy rating, eleven have issued a Hold rating and six have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Reduce” and a consensus target price of $7.56.

Wendy’s Stock Performance

NASDAQ WEN traded up $0.21 on Friday, hitting $8.15. 10,021,646 shares of the company’s stock traded hands, compared to its average volume of 10,942,752. The company has a current ratio of 1.90, a quick ratio of 1.88 and a debt-to-equity ratio of 27.95. Wendy’s has a 1-year low of $5.94 and a 1-year high of $10.12. The firm’s 50-day moving average price is $6.95 and its two-hundred day moving average price is $7.36. The firm has a market capitalization of $1.55 billion, a PE ratio of 12.35, a P/E/G ratio of 1.40 and a beta of 0.37.

Wendy’s (NASDAQ:WEN) last released its quarterly earnings data on Thursday, November 5th. The restaurant operator reported $0.13 earnings per share for the quarter, topping analysts’ consensus estimates of $0.09 by $0.04. Wendy’s had a net margin of 5.72% and a return on equity of 115.31%. The firm had revenue of $435.62 million for the quarter, compared to analyst estimates of $531.28 million. During the same quarter in the prior year, the business earned $0.24 earnings per share. The business’s quarterly revenue was down .5% compared to the same quarter last year. As a group, analysts expect that Wendy’s will post 0.50 EPS for the current year.

Institutional Trading of Wendy’s

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Global Retirement Partners LLC acquired a new position in Wendy’s during the second quarter worth about $27,000. Cassaday & Co Wealth Management LLC purchased a new stake in Wendy’s during the 1st quarter valued at about $30,000. Sterling Capital Management LLC grew its stake in Wendy’s by 630.5% during the 3rd quarter. Sterling Capital Management LLC now owns 5,245 shares of the restaurant operator’s stock valued at $33,000 after acquiring an additional 4,527 shares in the last quarter. Nykredit A S purchased a new stake in Wendy’s during the 2nd quarter valued at about $37,000. Finally, Pavion Blue Capital LLC acquired a new stake in Wendy’s in the 3rd quarter valued at about $64,000. 85.96% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Wendy’s

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

• Positive Sentiment: Wendy’s reported Q3 adjusted earnings of $0.13 per share, above the $0.09 analyst consensus. The company also introduced Dave’s Way, a multi-year plan focused on improving traffic, market share and restaurant profitability. Wendy’s Q3 results
• Positive Sentiment: The strategy includes making breakfast optional by location based on profitability tests, and Wendy’s says breakfast initiatives could provide up to $200 million in restaurant-level EBITDA impact. It also signed a letter of intent to acquire up to 163 restaurants, subject to approvals and a definitive agreement. Breakfast and turnaround plans
• Neutral Sentiment: Stephens raised its price target from $7 to $8 but kept an “equal weight” rating, signaling limited conviction in near-term upside at the cited share price. Stephens analyst action
• Negative Sentiment: The board rejected a $7.35-per-share cash offer from a Trian-led investor group, saying it undervalued Wendy’s, and adopted a limited-duration shareholder rights plan. The offer was below the stock’s recently cited market price, so rejection removes an immediate cash-out proposal while raising the prospect of an activist or takeover dispute. Wendy’s rejects Trian offer
• Negative Sentiment: Despite the EPS beat, coverage highlights declines in sales and earnings versus the prior year. That weakness makes the success of the new turnaround plan important to justify the board’s decision to remain independent. Q3 sales and turnaround coverage

Wendy’s Company Profile

The Wendy’s Company (NASDAQ: WEN) operates and franchises quick-service restaurants under the Wendy’s brand. Its restaurants are known for hamburgers made with fresh, never-frozen beef, along with chicken sandwiches, salads, fries, breakfast items, desserts, and beverages.

Founded by Dave Thomas in 1969, Wendy’s has grown into an international restaurant chain with locations primarily in the United States and Canada, as well as select markets in other countries. The company’s restaurant system includes both company-operated and franchised locations.

In addition to its restaurant operations, Wendy’s supports customers through digital ordering, delivery, loyalty programs, and mobile applications.