Wendy’s (NASDAQ:WEN) Reaches New 52-Week Low – Should You Sell?

The Wendy’s Company (NASDAQ:WEN) reached a new 52-week low during trading on Monday . The stock traded as low as $6.36 and last traded at $6.4050, with a volume of 4509255 shares changing hands. The stock had previously closed at $6.80.

More Wendy’s News

Here are the key news stories impacting Wendy’s this week:

• Positive Sentiment: Retail traders are targeting Wendy’s as a turnaround/meme-stock play, sparking heavy buying and short-squeeze speculation. Wendy’s stock soars as meme traders target another turnaround play
• Positive Sentiment: Wendy’s named Steve Cirulis as CFO and chief strategy officer, a leadership change that could help reassure investors about the company’s turnaround plans. The Wendy’s Company Names Steve Cirulis Chief Financial Officer and Chief Strategy Officer
• Neutral Sentiment: Analyst Stephens reaffirmed its equal-weight rating and set an $8 price target, implying upside from current levels but not a major bullish call. Wendy’s had its equal weight rating reaffirmed by Stephens
• Negative Sentiment: Wendy’s recent menu chatter includes some consumer backlash over a limited-edition item, which could hint at mixed brand reception, though it appears less important than the trading-driven rally. Wendy’s fans slam new limited edition menu

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the stock. Citigroup lifted their target price on shares of Wendy’s from $7.25 to $7.75 and gave the stock a “neutral” rating in a research note on Monday, May 11th. Mizuho set a $6.00 price objective on shares of Wendy’s in a research note on Friday, May 1st. Wall Street Zen raised shares of Wendy’s from a “sell” rating to a “hold” rating in a report on Saturday, May 16th. JPMorgan Chase & Co. restated an “underweight” rating and set a $6.00 target price (down from $7.00) on shares of Wendy’s in a research report on Monday, May 11th. Finally, Stifel Nicolaus set a $6.00 price target on Wendy’s in a report on Thursday, April 30th. Five analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and six have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus price target of $8.56.

Wendy’s Price Performance

The business’s 50-day moving average price is $7.12 and its 200 day moving average price is $7.55. The company has a market capitalization of $1.63 billion, a P/E ratio of 11.00, a price-to-earnings-growth ratio of 0.45 and a beta of 0.38. The company has a quick ratio of 1.81, a current ratio of 1.83 and a debt-to-equity ratio of 29.25.

Wendy’s (NASDAQ:WEN) last posted its earnings results on Friday, May 8th. The restaurant operator reported $0.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.10 by $0.02. Wendy’s had a net margin of 6.77% and a return on equity of 136.46%. The business had revenue of $432.30 million for the quarter, compared to analysts’ expectations of $518.03 million. During the same period in the prior year, the company posted $0.20 EPS. The business’s revenue for the quarter was up 3.3% compared to the same quarter last year. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. Analysts anticipate that The Wendy’s Company will post 0.58 EPS for the current fiscal year.

Wendy’s Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were issued a $0.14 dividend. The ex-dividend date was Monday, June 1st. This represents a $0.56 annualized dividend and a dividend yield of 6.5%. Wendy’s’s dividend payout ratio (DPR) is currently 71.79%.

Institutional Trading of Wendy’s

Institutional investors and hedge funds have recently bought and sold shares of the stock. Hilton Head Capital Partners LLC purchased a new stake in Wendy’s in the fourth quarter worth $30,000. Cassaday & Co Wealth Management LLC bought a new stake in shares of Wendy’s in the 1st quarter worth approximately $30,000. Fifth Third Bancorp increased its position in Wendy’s by 161.0% during the 4th quarter. Fifth Third Bancorp now owns 3,829 shares of the restaurant operator’s stock valued at $32,000 after buying an additional 2,362 shares in the last quarter. SJS Investment Consulting Inc. bought a new position in Wendy’s during the 1st quarter valued at approximately $32,000. Finally, Gen Wealth Partners Inc purchased a new stake in shares of Wendy’s in the fourth quarter worth $33,000. 85.96% of the stock is currently owned by hedge funds and other institutional investors.

About Wendy’s

The Wendy’s Company (NASDAQ:WEN) operates as a global quick-service restaurant chain, best known for its square-shaped beef patties, fresh ingredient sourcing and signature Frosty dessert. The company’s menu features a variety of hamburgers, chicken sandwiches, salads, breakfast sandwiches, sides and beverages, designed to appeal to a broad customer base seeking both classic and contemporary fast-food options. Wendy’s has placed particular emphasis on product innovation, introducing limited-time offerings and revamped core menu items to maintain customer interest and respond to evolving dining trends.

Founded in 1969 by entrepreneur Dave Thomas in Columbus, Ohio, Wendy’s expanded rapidly through both company-owned and franchised outlets.