Investment Analysts’ Weekly Ratings Changes for Wendys (WEN)

Wendys (NASDAQ: WEN) recently received a number of ratings updates from brokerages and research firms:

  • 11/17/2018 – Wendys had its “hold” rating reaffirmed by analysts at Zacks Investment Research. According to Zacks, “Shares of Wendy’s have outperformed the industry in a year’s time. The company is expected to remain on its growth trajectory after it posted better-than-expected earnings in the third quarter of 2018. Earnings not only surpassed the Zacks Consensus Estimate but also increased a whopping 88.9% year over year, primarily favored by the positive effect of lower tax rate from Tax Cuts and Jobs Act of 2017. Increase in adjusted EBITDA also boosted the reported quarter’s earnings. Revenues in the quarter grew on increased sales at company-operated restaurants. Menu innovation, increased investments in technology and reimaging of restaurants are expected to boost traffic and drive sales in the months ahead. Moreover, the company’s international business is poised to be a long-term growth driver. However, higher labor and commodity costs, along with capital spending, may dent margins.”
  • 11/10/2018 – Wendys was upgraded by analysts at ValuEngine from a “hold” rating to a “buy” rating.
  • 11/8/2018 – Wendys had its price target lowered by analysts at Wells Fargo & Co from $18.00 to $17.50. They now have a “market perform” rating on the stock.
  • 11/8/2018 – Wendys was given a new $20.00 price target on by analysts at Mizuho. They now have a “buy” rating on the stock.
  • 11/7/2018 – Wendys had its “buy” rating reaffirmed by analysts at Wedbush. They now have a $20.00 price target on the stock.
  • 10/18/2018 – Wendys is now covered by analysts at Gordon Haskett. They set a “buy” rating and a $20.00 price target on the stock.
  • 10/13/2018 – Wendys was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $19.00 price target on the stock. According to Zacks, “Shares of Wendy’s have outperformed the industry in a year’s time. Sales initiatives like menu innovation and promotional offerings proved beneficial to the company. Additionally, increased investments in technology should improve services and thus result in increased customer count. Reimaging of its restaurants is also expected to boost traffic and drive sales. Continual expansion of delivery service bodes well too. Moreover, the company’s international business is poised to be a long-term growth driver. However, higher labor and commodity costs along with capital spending may dent margins. Wendy’s operates in the retail restaurant space that is highly dependent on consumer discretionary spending.”
  • 10/11/2018 – Wendys was upgraded by analysts at BidaskClub from a “sell” rating to a “hold” rating.
  • 10/5/2018 – Wendys was downgraded by analysts at BidaskClub from a “hold” rating to a “sell” rating.
  • 10/3/2018 – Wendys is now covered by analysts at KeyCorp. They set a “sector weight” rating on the stock.
  • 9/28/2018 – Wendys is now covered by analysts at Telsey Advisory Group. They set an “outperform” rating and a $21.00 price target on the stock.
  • 9/27/2018 – Wendys was upgraded by analysts at BidaskClub from a “sell” rating to a “hold” rating.
  • 9/25/2018 – Wendys is now covered by analysts at BTIG Research. They set a “buy” rating and a $20.00 price target on the stock.

Shares of NASDAQ:WEN traded down $0.02 during trading on Monday, reaching $17.77. The stock had a trading volume of 279,484 shares, compared to its average volume of 5,394,018. The company has a debt-to-equity ratio of 3.52, a current ratio of 2.52 and a quick ratio of 2.51. The firm has a market cap of $4.21 billion, a PE ratio of 41.33, a P/E/G ratio of 1.50 and a beta of 0.53. Wendys Co has a fifty-two week low of $13.67 and a fifty-two week high of $18.68.

Wendys (NASDAQ:WEN) last released its earnings results on Tuesday, November 6th. The restaurant operator reported $0.17 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.15 by $0.02. Wendys had a return on equity of 23.36% and a net margin of 40.00%. The firm had revenue of $400.55 million during the quarter. During the same quarter in the previous year, the company posted $0.09 earnings per share. The business’s revenue for the quarter was up 30.0% compared to the same quarter last year. As a group, sell-side analysts expect that Wendys Co will post 0.57 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Monday, December 17th. Shareholders of record on Monday, December 3rd will be paid a dividend of $0.085 per share. The ex-dividend date is Friday, November 30th. This represents a $0.34 annualized dividend and a yield of 1.91%. Wendys’s dividend payout ratio is presently 79.07%.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Nordea Investment Management AB grew its stake in shares of Wendys by 35.9% in the third quarter. Nordea Investment Management AB now owns 260,855 shares of the restaurant operator’s stock valued at $4,470,000 after buying an additional 68,873 shares in the last quarter. TIAA CREF Investment Management LLC grew its stake in shares of Wendys by 129.0% in the third quarter. TIAA CREF Investment Management LLC now owns 499,728 shares of the restaurant operator’s stock valued at $8,565,000 after buying an additional 281,468 shares in the last quarter. Teachers Advisors LLC grew its position in Wendys by 3.2% in the third quarter. Teachers Advisors LLC now owns 214,113 shares of the restaurant operator’s stock valued at $3,670,000 after acquiring an additional 6,638 shares in the last quarter. Thrivent Financial for Lutherans grew its position in Wendys by 16.1% in the third quarter. Thrivent Financial for Lutherans now owns 196,164 shares of the restaurant operator’s stock valued at $3,362,000 after acquiring an additional 27,186 shares in the last quarter. Finally, Verition Fund Management LLC grew its position in Wendys by 742.6% in the third quarter. Verition Fund Management LLC now owns 151,489 shares of the restaurant operator’s stock valued at $2,597,000 after acquiring an additional 133,510 shares in the last quarter. 76.46% of the stock is owned by hedge funds and other institutional investors.

The Wendy's Company, through its subsidiaries, operates as a quick-service restaurant company. It is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches. The company's restaurants offer a range of chicken breast sandwiches, chicken nuggets, chili, French fries, baked potatoes, salads, soft drinks, desserts, and kids' meals.

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