Wendy’s (NASDAQ:WEN) Shares Gap Up After Earnings Beat

The Wendy’s Company (NASDAQ:WEN) shares gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $8.83, but opened at $9.80. Wendy’s shares last traded at $9.08, with a volume of 2,657,277 shares trading hands.

The restaurant operator reported $0.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.20 by $0.04. Wendy’s had a net margin of 8.63% and a return on equity of 103.07%. The firm’s quarterly revenue was down 3.0% on a year-over-year basis. During the same period in the previous year, the company earned $0.25 EPS. Wendy’s has set its FY 2025 guidance at 0.820-0.890 EPS.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on WEN. Sanford C. Bernstein set a $9.00 price target on shares of Wendy’s in a report on Wednesday, October 22nd. Argus reiterated a “hold” rating on shares of Wendy’s in a research report on Tuesday, September 23rd. Citigroup raised Wendy’s from a “hold” rating to a “strong-buy” rating in a research note on Friday, August 8th. Bank of America reduced their target price on Wendy’s from $13.00 to $11.00 and set a “buy” rating for the company in a report on Friday, July 18th. Finally, UBS Group reaffirmed a “neutral” rating and issued a $11.00 price objective (down previously from $14.00) on shares of Wendy’s in a research note on Wednesday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, fourteen have assigned a Hold rating and five have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Wendy’s has a consensus rating of “Hold” and an average target price of $11.40.

Hedge Funds Weigh In On Wendy’s

Institutional investors have recently modified their holdings of the company. Gradient Investments LLC raised its position in Wendy’s by 6.2% in the 2nd quarter. Gradient Investments LLC now owns 836,626 shares of the restaurant operator’s stock worth $9,554,000 after purchasing an additional 48,736 shares during the last quarter. Intech Investment Management LLC grew its position in shares of Wendy’s by 398.2% during the 1st quarter. Intech Investment Management LLC now owns 192,177 shares of the restaurant operator’s stock worth $2,812,000 after buying an additional 153,604 shares during the period. International Assets Investment Management LLC bought a new stake in shares of Wendy’s during the second quarter worth approximately $448,000. Charles Schwab Investment Management Inc. lifted its holdings in Wendy’s by 7.4% in the first quarter. Charles Schwab Investment Management Inc. now owns 6,767,723 shares of the restaurant operator’s stock valued at $99,012,000 after buying an additional 464,444 shares during the period. Finally, Janney Montgomery Scott LLC boosted its stake in Wendy’s by 82.3% in the second quarter. Janney Montgomery Scott LLC now owns 72,636 shares of the restaurant operator’s stock valued at $830,000 after acquiring an additional 32,792 shares during the last quarter. Institutional investors own 85.96% of the company’s stock.

Wendy’s Stock Up 4.7%

The business’s fifty day simple moving average is $9.30 and its 200 day simple moving average is $10.61. The company has a current ratio of 1.45, a quick ratio of 1.43 and a debt-to-equity ratio of 28.74. The stock has a market cap of $1.76 billion, a price-to-earnings ratio of 9.58, a price-to-earnings-growth ratio of 1.63 and a beta of 0.38.

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.