Wendy’s Company (The) (WEN) Downgraded by Zacks Investment Research

Zacks Investment Research downgraded shares of Wendy’s Company (The) (NASDAQ:WEN) from a hold rating to a sell rating in a report issued on Thursday morning.

According to Zacks, “Wendy’s shares have underperformed the industry year to date. Third-quarter 2017 adjusted earnings of 9 cents per share missed the Zacks Consensus Estimate by 25%. Moreover, earnings declined 18.2% year over year owing to lower revenues. Revenues of $308 million lagged the consensus mark by a slight margin and declined 15.4% year over year. Revenues have been declining over the past few quarters due toreduced number of company-operated restaurants. Though Wendy’s transition to a franchise-based business model is expected to lower the company’s G&A expenses, thereby boosting earnings 2017 onwards, it may continue to weigh on its revenues. Initiatives like Image Activation program along with focus on menu innovation, delivery, technology-related offerings and global expansion bode well. Yet, higher labor and commodity costs as well as a soft industry backdrop raise concerns.”

Other equities analysts also recently issued reports about the stock. BMO Capital Markets reaffirmed a buy rating on shares of Wendy’s Company (The) in a report on Friday, August 11th. Longbow Research raised shares of Wendy’s Company (The) from a neutral rating to a buy rating and raised their price objective for the stock from $15.23 to $18.00 in a report on Friday, September 15th. Stifel Nicolaus began coverage on shares of Wendy’s Company (The) in a report on Monday, October 2nd. They set a buy rating and a $18.00 price objective for the company. SunTrust Banks, Inc. reissued a buy rating and set a $18.00 price target on shares of Wendy’s Company (The) in a report on Monday, October 2nd. Finally, Royal Bank Of Canada reissued a hold rating and set a $16.00 price target on shares of Wendy’s Company (The) in a report on Tuesday, November 7th. Four research analysts have rated the stock with a sell rating, eleven have given a hold rating and eight have given a buy rating to the company’s stock. Wendy’s Company (The) has a consensus rating of Hold and an average price target of $15.97.

Shares of Wendy’s Company (WEN) traded down $0.19 during trading on Thursday, reaching $14.50. 4,060,500 shares of the company’s stock were exchanged, compared to its average volume of 2,828,500. The company has a current ratio of 1.80, a quick ratio of 1.78 and a debt-to-equity ratio of 5.83. Wendy’s Company has a 12-month low of $11.20 and a 12-month high of $16.66. The company has a market cap of $3,510.00, a P/E ratio of 35.37, a PEG ratio of 2.55 and a beta of 0.94.

Wendy’s Company (The) (NASDAQ:WEN) last issued its quarterly earnings results on Wednesday, November 8th. The restaurant operator reported $0.09 earnings per share for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.03). The company had revenue of $308.00 million during the quarter. Wendy’s Company (The) had a net margin of 5.20% and a return on equity of 20.35%. Wendy’s Company (The)’s revenue for the quarter was down 15.4% on a year-over-year basis. During the same period in the previous year, the business posted $0.11 earnings per share. analysts forecast that Wendy’s Company will post 0.44 earnings per share for the current year.

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The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 15th. Investors of record on Friday, December 1st will be paid a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a yield of 1.93%. The ex-dividend date is Thursday, November 30th. Wendy’s Company (The)’s payout ratio is 112.00%.

In related news, insider E.J. Wunsch sold 3,548 shares of Wendy’s Company (The) stock in a transaction that occurred on Wednesday, October 4th. The shares were sold at an average price of $15.43, for a total transaction of $54,745.64. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 26.50% of the stock is owned by company insiders.

Institutional investors have recently added to or reduced their stakes in the stock. WFG Advisors LP boosted its stake in Wendy’s Company (The) by 50.2% during the 2nd quarter. WFG Advisors LP now owns 7,017 shares of the restaurant operator’s stock worth $109,000 after acquiring an additional 2,344 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank boosted its stake in Wendy’s Company (The) by 10.2% during the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 7,495 shares of the restaurant operator’s stock worth $116,000 after acquiring an additional 692 shares during the last quarter. Riverhead Capital Management LLC boosted its stake in Wendy’s Company (The) by 75.7% during the 2nd quarter. Riverhead Capital Management LLC now owns 9,312 shares of the restaurant operator’s stock worth $144,000 after acquiring an additional 4,012 shares during the last quarter. Sigma Planning Corp boosted its stake in Wendy’s Company (The) by 0.5% during the 2nd quarter. Sigma Planning Corp now owns 11,222 shares of the restaurant operator’s stock worth $174,000 after acquiring an additional 51 shares during the last quarter. Finally, Sheaff Brock Investment Advisors LLC bought a new position in Wendy’s Company (The) during the 2nd quarter worth approximately $219,000. 76.14% of the stock is currently owned by institutional investors and hedge funds.

About Wendy’s Company (The)

The Wendy’s Company is the parent company of subsidiary holding company Wendy’s Restaurants, LLC (Wendy’s Restaurants). Wendy’s Restaurants is the parent company of Wendy’s International, LLC (Wendy’s), which is the owner and franchisor of the Wendy’s restaurant system in the United States. Wendy’s is a restaurant company specializing in the hamburger sandwich segment.

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Analyst Recommendations for Wendy`s Company (The) (NASDAQ:WEN)

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