Wendy’s (NASDAQ:WEN) Sets New 12-Month Low on Analyst Downgrade

The Wendy’s Company (NASDAQ:WEN)’s share price reached a new 52-week low during trading on Wednesday after Royal Bank Of Canada lowered their price target on the stock from $8.50 to $8.00. Royal Bank Of Canada currently has a sector perform rating on the stock. Wendy’s traded as low as $6.73 and last traded at $7.00, with a volume of 22510477 shares. The stock had previously closed at $7.48.

WEN has been the subject of a number of other research reports. The Goldman Sachs Group reduced their target price on Wendy’s from $8.00 to $7.00 and set a “sell” rating for the company in a report on Tuesday. Barclays dropped their price objective on Wendy’s from $9.00 to $8.00 and set an “equal weight” rating on the stock in a research report on Tuesday. Sanford C. Bernstein set a $9.00 target price on Wendy’s in a research report on Wednesday, October 22nd. Stifel Nicolaus set a $8.00 price target on shares of Wendy’s in a report on Monday. Finally, Argus raised shares of Wendy’s to a “hold” rating in a report on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, sixteen have issued a Hold rating and five have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $9.39.

Key Stories Impacting Wendy’s

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

• Positive Sentiment: Trian/Nelson Peltz signaled in an amended 13D that he sees Wendy’s as undervalued and is weighing options including selling his stake or pursuing an acquisition—this activist spotlight drove buying interest and a sharp intraday pop. Billionaire Nelson Peltz Once Again Considers Buying Wendy’s Outright
• Positive Sentiment: Heavy call-option activity and unusual options volume point to speculative/leveraged bullish positioning tied to the activist chatter—this amplified upside momentum during the day. Wendy’s Sees Unusually High Options Volume (NASDAQ:WEN)
• Positive Sentiment: Several outlets reported the stock rebound and investor interest after Peltz’s filing, increasing visibility among institutional and retail traders. Wendy’s Stock Surges After Billionaire Nelson Peltz Calls It Undervalued
• Neutral Sentiment: The Wendy’s Company issued a public comment on Trian’s amended 13D noting its board regularly reviews strategic options to maximize shareholder value—this is a measured corporate response but does not commit to a deal. The Wendy’s Company Comments on Amended 13D Filing from Trian Partners
• Neutral Sentiment: Marketing tie-ins (Thin Mints Frosty return and new flavor releases) may support traffic/brand buzz but are unlikely to materially change near-term fundamentals. Wendy’s teams up with Girl Scouts again and the new Thin Mints Frosty flavor is a game changer
• Negative Sentiment: Wendy’s confirmed plans that could include closing a meaningful number of U.S. restaurants (reports say up to ~6%/hundreds of locations) as it shifts to value-focused strategies—this raises near-term revenue and franchise profitability concerns. Wendy’s closing up to 6% of US locations in first half of 2026
• Negative Sentiment: Multiple analysts cut ratings/price targets (RBC to $8 and others, plus Truist/BMO notes) and the stock faced a notable pullback after downgrades—analyst skepticism about growth and store closures pressured the share price. Royal Bank Of Canada Lowers Wendy’s (NASDAQ:WEN) Price Target to $8.00
• Negative Sentiment: Coverage noted the stock hit a new 12-month low after analyst downgrades, highlighting persistent fundamental concerns despite the activist interest. Wendy’s (NASDAQ:WEN) Hits New 12-Month Low Following Analyst Downgrade

Hedge Funds Weigh In On Wendy’s

A number of hedge funds have recently modified their holdings of WEN. Elevation Point Wealth Partners LLC bought a new stake in shares of Wendy’s during the 2nd quarter valued at $25,000. Investors Research Corp purchased a new stake in Wendy’s in the 3rd quarter worth $27,000. Versant Capital Management Inc raised its holdings in Wendy’s by 19,693.8% during the third quarter. Versant Capital Management Inc now owns 3,167 shares of the restaurant operator’s stock valued at $29,000 after acquiring an additional 3,151 shares during the period. MassMutual Private Wealth & Trust FSB raised its holdings in Wendy’s by 205.0% during the third quarter. MassMutual Private Wealth & Trust FSB now owns 3,257 shares of the restaurant operator’s stock valued at $30,000 after acquiring an additional 2,189 shares during the period. Finally, Hilton Head Capital Partners LLC purchased a new position in shares of Wendy’s in the fourth quarter valued at about $30,000. 85.96% of the stock is currently owned by institutional investors.

Wendy’s Stock Up 1.7%

The firm has a market capitalization of $1.58 billion, a PE ratio of 9.79, a P/E/G ratio of 2.28 and a beta of 0.38. The company has a debt-to-equity ratio of 28.77, a current ratio of 1.76 and a quick ratio of 1.74. The company has a 50-day moving average price of $8.15 and a 200 day moving average price of $8.88.

Wendy’s (NASDAQ:WEN) last issued its earnings results on Friday, February 13th. The restaurant operator reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.02. Wendy’s had a return on equity of 145.93% and a net margin of 7.58%.The company had revenue of $439.60 million for the quarter, compared to the consensus estimate of $537.11 million. During the same quarter last year, the company earned $0.25 EPS. The firm’s quarterly revenue was down 5.5% on a year-over-year basis. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. Analysts forecast that The Wendy’s Company will post 0.99 earnings per share for the current year.

Wendy’s Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 2nd will be issued a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 6.7%. The ex-dividend date of this dividend is Monday, March 2nd. Wendy’s’s payout ratio is 65.88%.

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.