The Wendy’s Company (NASDAQ:WEN) Announces Quarterly Dividend of $0.14

The Wendy’s Company (NASDAQ:WEN) announced a quarterly dividend on Friday, May 2nd, RTT News reports. Shareholders of record on Monday, June 2nd will be paid a dividend of 0.14 per share by the restaurant operator on Monday, June 16th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 4.93%. The ex-dividend date of this dividend is Monday, June 2nd.

Wendy’s has increased its dividend payment by an average of 32.5% per year over the last three years. Wendy’s has a dividend payout ratio of 52.8% meaning its dividend is sufficiently covered by earnings. Analysts expect Wendy’s to earn $1.12 per share next year, which means the company should continue to be able to cover its $0.56 annual dividend with an expected future payout ratio of 50.0%.

Wendy’s Stock Up 2.3%

WEN opened at $11.36 on Friday. The business has a 50 day moving average price of $12.65 and a 200 day moving average price of $14.82. Wendy’s has a twelve month low of $10.98 and a twelve month high of $20.60. The company has a debt-to-equity ratio of 12.48, a quick ratio of 1.83 and a current ratio of 1.85. The firm has a market cap of $2.18 billion, a P/E ratio of 11.96, a price-to-earnings-growth ratio of 2.00 and a beta of 0.40.

Wendy’s (NASDAQ:WEN) last released its earnings results on Friday, May 2nd. The restaurant operator reported $0.20 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.20. Wendy’s had a net margin of 8.65% and a return on equity of 75.56%. The firm had revenue of $523.47 million during the quarter, compared to analyst estimates of $530.11 million. During the same quarter in the previous year, the business earned $0.23 EPS. The business’s revenue was down 2.1% on a year-over-year basis. Research analysts forecast that Wendy’s will post 0.99 EPS for the current year.

Analyst Ratings Changes

A number of research analysts recently commented on the company. UBS Group cut their target price on Wendy’s from $16.00 to $14.00 and set a “neutral” rating for the company in a research note on Monday, April 28th. JPMorgan Chase & Co. raised shares of Wendy’s from a “neutral” rating to an “overweight” rating and dropped their price target for the stock from $17.00 to $15.00 in a research report on Monday, May 5th. Barclays dropped their price target on shares of Wendy’s from $14.00 to $13.00 and set an “equal weight” rating for the company in a research report on Monday, May 5th. Morgan Stanley dropped their target price on Wendy’s from $14.00 to $13.00 and set an “underweight” rating for the company in a report on Monday, May 5th. Finally, Royal Bank of Canada reissued a “sector perform” rating and issued a $17.00 target price on shares of Wendy’s in a report on Tuesday, March 4th. Two research analysts have rated the stock with a sell rating, twelve have given a hold rating, five have assigned a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $16.34.

Insider Activity

In other Wendy’s news, insider Abigail E. Pringle sold 136,819 shares of the firm’s stock in a transaction that occurred on Monday, May 5th. The stock was sold at an average price of $12.81, for a total value of $1,752,651.39. Following the completion of the sale, the insider now owns 203,005 shares of the company’s stock, valued at approximately $2,600,494.05. This trade represents a 40.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 17.00% of the company’s stock.

Hedge Funds Weigh In On Wendy’s

An institutional investor recently bought a new position in Wendy’s stock. United Services Automobile Association acquired a new stake in The Wendy’s Company (NASDAQ:WEN) during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 11,021 shares of the restaurant operator’s stock, valued at approximately $161,000. 85.96% of the stock is owned by institutional investors and hedge funds.

Wendy’s Company Profile

The Wendy’s Co engages in operating, developing, and franchising a system of quick-service restaurants. It operates through the following segments: Wendy’s U.S., Wendy’s International, and Global Real Estate and Development. The Wendy’s U.S. segment includes the operation and franchising of Wendy’s restaurants in the U.S.