Wendy’s (NASDAQ:WEN) Cut to Sell at Northcoast Research

Northcoast Research lowered shares of Wendy’s (NASDAQ:WEN) from a neutral rating to a sell rating in a research report released on Thursday morning, Marketbeat reports. The brokerage currently has $7.00 price objective on the restaurant operator’s stock.

Several other research analysts have also recently commented on WEN. BTIG Research restated a “neutral” rating on shares of Wendy’s in a research report on Monday, September 15th. Stephens reissued an “equal weight” rating on shares of Wendy’s in a report on Monday, August 11th. Cowen restated a “hold” rating on shares of Wendy’s in a research note on Friday, August 8th. Loop Capital decreased their target price on shares of Wendy’s from $21.00 to $16.00 and set a “buy” rating for the company in a research report on Wednesday, July 16th. Finally, BMO Capital Markets reissued a “market perform” rating and set a $12.00 target price (down previously from $15.00) on shares of Wendy’s in a research note on Friday, August 8th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, thirteen have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $12.66.

Wendy’s Stock Performance

Shares of WEN stock opened at $9.21 on Thursday. The company has a market cap of $1.76 billion, a P/E ratio of 9.59, a PEG ratio of 1.73 and a beta of 0.37. The business has a 50 day moving average of $10.11 and a two-hundred day moving average of $11.63. Wendy’s has a 52 week low of $9.04 and a 52 week high of $20.60. The company has a quick ratio of 1.43, a current ratio of 1.45 and a debt-to-equity ratio of 28.74.

Wendy’s (NASDAQ:WEN) last announced its quarterly earnings results on Friday, August 8th. The restaurant operator reported $0.29 earnings per share for the quarter, topping analysts’ consensus estimates of $0.25 by $0.04. Wendy’s had a return on equity of 103.07% and a net margin of 8.63%.The business had revenue of $560.93 million for the quarter, compared to analysts’ expectations of $558.95 million. During the same period in the prior year, the firm earned $0.27 EPS. The business’s quarterly revenue was down 1.7% on a year-over-year basis. Wendy’s has set its FY 2025 guidance at 0.820-0.89 EPS. As a group, analysts anticipate that Wendy’s will post 0.99 EPS for the current year.

Wendy’s Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd were given a $0.14 dividend. The ex-dividend date was Tuesday, September 2nd. This represents a $0.56 annualized dividend and a yield of 6.1%. Wendy’s’s payout ratio is 58.33%.

Institutional Investors Weigh In On Wendy’s

Large investors have recently modified their holdings of the stock. Elevation Point Wealth Partners LLC acquired a new stake in shares of Wendy’s during the second quarter worth $25,000. Farther Finance Advisors LLC increased its stake in Wendy’s by 1,111.9% in the 1st quarter. Farther Finance Advisors LLC now owns 2,133 shares of the restaurant operator’s stock worth $31,000 after purchasing an additional 1,957 shares in the last quarter. Steward Partners Investment Advisory LLC raised its holdings in Wendy’s by 35.0% during the 2nd quarter. Steward Partners Investment Advisory LLC now owns 4,017 shares of the restaurant operator’s stock worth $46,000 after buying an additional 1,041 shares during the period. Caitong International Asset Management Co. Ltd lifted its stake in Wendy’s by 7,180.9% during the first quarter. Caitong International Asset Management Co. Ltd now owns 3,422 shares of the restaurant operator’s stock valued at $50,000 after buying an additional 3,375 shares in the last quarter. Finally, Signaturefd LLC boosted its holdings in shares of Wendy’s by 25.2% in the second quarter. Signaturefd LLC now owns 5,336 shares of the restaurant operator’s stock worth $61,000 after buying an additional 1,074 shares during the period. 85.96% of the stock is owned by institutional investors.

About Wendy’s

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.