Wendys Co Forecasted to Post FY2019 Earnings of $0.56 Per Share (NASDAQ:WEN)

Wendys Co (NASDAQ:WEN) – Stock analysts at KeyCorp decreased their FY2019 earnings per share (EPS) estimates for shares of Wendys in a note issued to investors on Monday, October 14th. KeyCorp analyst E. Gonzalez now forecasts that the restaurant operator will post earnings per share of $0.56 for the year, down from their prior forecast of $0.57. KeyCorp also issued estimates for Wendys’ Q1 2020 earnings at $0.13 EPS, Q2 2020 earnings at $0.16 EPS, Q3 2020 earnings at $0.16 EPS, Q4 2020 earnings at $0.14 EPS, FY2020 earnings at $0.59 EPS, Q1 2021 earnings at $0.16 EPS, Q2 2021 earnings at $0.20 EPS, Q3 2021 earnings at $0.19 EPS and FY2021 earnings at $0.73 EPS.

Wendys (NASDAQ:WEN) last issued its earnings results on Wednesday, August 7th. The restaurant operator reported $0.18 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.17 by $0.01. The business had revenue of $435.30 million for the quarter, compared to analysts’ expectations of $439.64 million. Wendys had a return on equity of 23.16% and a net margin of 28.88%. The company’s quarterly revenue was up 5.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.14 EPS.

A number of other brokerages also recently weighed in on WEN. BTIG Research downgraded Wendys from a “buy” rating to a “neutral” rating in a report on Tuesday, September 10th. Wells Fargo & Co lifted their price target on Wendys from $19.00 to $20.00 and gave the company a “market perform” rating in a report on Tuesday, September 10th. Morgan Stanley lifted their price target on Wendys from $19.00 to $22.00 and gave the company an “equal weight” rating in a report on Monday. Credit Suisse Group set a $21.00 price target on Wendys and gave the company a “hold” rating in a report on Tuesday, September 10th. Finally, MKM Partners set a $20.00 price target on Wendys and gave the company a “hold” rating in a report on Tuesday, September 10th. One research analyst has rated the stock with a sell rating, fourteen have assigned a hold rating and ten have issued a buy rating to the stock. Wendys has an average rating of “Hold” and a consensus price target of $21.36.

Shares of NASDAQ WEN opened at $20.90 on Wednesday. The company has a quick ratio of 1.96, a current ratio of 1.97 and a debt-to-equity ratio of 5.67. The stock has a market capitalization of $4.79 billion, a price-to-earnings ratio of 35.42, a PEG ratio of 2.52 and a beta of 0.65. The stock’s fifty day simple moving average is $20.78 and its 200 day simple moving average is $19.48. Wendys has a 52-week low of $14.96 and a 52-week high of $22.84.

Hedge funds have recently bought and sold shares of the company. Invesco Ltd. increased its position in shares of Wendys by 65.5% in the 2nd quarter. Invesco Ltd. now owns 10,441,578 shares of the restaurant operator’s stock valued at $204,447,000 after buying an additional 4,131,438 shares in the last quarter. Macquarie Group Ltd. bought a new stake in shares of Wendys in the 2nd quarter valued at $33,434,000. Holocene Advisors LP increased its position in shares of Wendys by 2,361.6% in the 2nd quarter. Holocene Advisors LP now owns 1,669,013 shares of the restaurant operator’s stock valued at $32,679,000 after buying an additional 1,601,211 shares in the last quarter. Prudential Financial Inc. increased its position in shares of Wendys by 1,406.4% in the 2nd quarter. Prudential Financial Inc. now owns 1,621,181 shares of the restaurant operator’s stock valued at $31,743,000 after buying an additional 1,513,560 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD increased its position in shares of Wendys by 1,369.4% in the 2nd quarter. Price T Rowe Associates Inc. MD now owns 1,612,184 shares of the restaurant operator’s stock valued at $31,567,000 after buying an additional 1,502,470 shares in the last quarter. 76.38% of the stock is currently owned by institutional investors.

In other news, major shareholder Trian Fund Management, L.P. sold 475,000 shares of the stock in a transaction on Thursday, August 15th. The stock was sold at an average price of $19.90, for a total value of $9,452,500.00. Following the transaction, the insider now owns 5,444,270 shares of the company’s stock, valued at approximately $108,340,973. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Matthew H. Peltz sold 2,000,000 shares of the stock in a transaction on Friday, August 16th. The shares were sold at an average price of $19.97, for a total value of $39,940,000.00. Following the completion of the transaction, the director now directly owns 5,444,270 shares in the company, valued at approximately $108,722,071.90. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 2,478,694 shares of company stock worth $49,468,264. Company insiders own 20.90% of the company’s stock.

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 16th. Shareholders of record on Monday, December 2nd will be issued a dividend of $0.12 per share. This is an increase from Wendys’s previous quarterly dividend of $0.10. The ex-dividend date is Friday, November 29th. This represents a $0.48 annualized dividend and a yield of 2.30%. Wendys’s dividend payout ratio is currently 67.80%.

About Wendys

The Wendy's Company, together its subsidiaries, operates as a quick-service restaurant company. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches. As of December 30, 2018, its restaurant system included 6,711 franchise restaurants, which comprise 353 owned and operated restaurants worldwide.

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