Zacks Investment Research upgraded shares of Wendy’s Co. (NASDAQ:WEN) from a hold rating to a buy rating in a report issued on Tuesday morning. The brokerage currently has $12.00 price target on the stock.
According to Zacks, “Wendy’s sales initiatives like menu innovation and promotional offerings are driving growth. Also, increased investments in technology should quicken service and thus, result in increased customer count. Notably, reimaging of its restaurants is also expected to increase traffic and drive higher sales. Moreover, the company’s international business is poised to be a long-term growth driver. However, Wendy’s revenues have been declining year over year over the past few quarters. This downside reflects a reduction in the number of company-operated restaurants. Though transition to a franchise-based business model has been weighing on revenues in the near term, it would lower Wendy’s general and administrative expenses and in turn, boost earnings going forward. However, rising costs, incremental capital spending macroeconomic concerns along with near-term pressure on comps remain potent headwinds.”
Several other research analysts have also issued reports on the stock. Goldman Sachs Group Inc. lowered shares of Wendy’s from a conviction-buy rating to a buy rating and reduced their target price for the company from $12.50 to $11.00 in a research note on Thursday, August 11th. Vetr lowered shares of Wendy’s from a strong-buy rating to a buy rating and set a $11.21 target price on the stock. in a research note on Monday, August 8th. Argus reaffirmed a hold rating on shares of Wendy’s in a research note on Tuesday, August 23rd. Royal Bank Of Canada reaffirmed an outperform rating on shares of Wendy’s in a research note on Wednesday, June 22nd. Finally, RBC Capital Markets reaffirmed a sector perform rating and issued a $11.00 target price on shares of Wendy’s in a research note on Saturday, August 13th. One equities research analyst has rated the stock with a sell rating, nine have given a hold rating and eight have given a buy rating to the stock. Wendy’s currently has a consensus rating of Hold and a consensus target price of $12.69.
Shares of Wendy’s (NASDAQ:WEN) opened at 10.81 on Tuesday. Wendy’s has a 52 week low of $8.43 and a 52 week high of $11.38. The stock has a 50 day moving average of $10.29 and a 200-day moving average of $10.29. The firm has a market capitalization of $2.82 billion, a price-to-earnings ratio of 20.83 and a beta of 0.83.
Wendy’s (NASDAQ:WEN) last issued its quarterly earnings data on Wednesday, August 10th. The company reported $0.10 EPS for the quarter, topping analysts’ consensus estimates of $0.09 by $0.01. Wendy’s had a net margin of 8.59% and a return on equity of 15.94%. The firm had revenue of $382.70 million for the quarter, compared to analyst estimates of $366.92 million. During the same quarter in the prior year, the firm earned $0.08 EPS. The company’s revenue was down 21.8% on a year-over-year basis. Analysts expect that Wendy’s will post $0.40 earnings per share for the current year.
The company also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Thursday, September 1st were issued a dividend of $0.06 per share. The ex-dividend date of this dividend was Tuesday, August 30th. This represents a $0.24 dividend on an annualized basis and a yield of 2.22%. Wendy’s’s payout ratio is 45.28%.
Institutional investors have recently modified their holdings of the company. Seven Eight Capital LLC bought a new position in Wendy’s during the second quarter worth approximately $102,000. Stephens Inc. AR boosted its position in Wendy’s by 8.9% in the second quarter. Stephens Inc. AR now owns 12,525 shares of the company’s stock worth $120,000 after buying an additional 1,025 shares during the period. LS Investment Advisors LLC boosted its position in Wendy’s by 67.1% in the second quarter. LS Investment Advisors LLC now owns 13,324 shares of the company’s stock worth $128,000 after buying an additional 5,350 shares during the period. Cambridge Investment Research Advisors Inc. boosted its position in Wendy’s by 31.7% in the second quarter. Cambridge Investment Research Advisors Inc. now owns 13,805 shares of the company’s stock worth $133,000 after buying an additional 3,321 shares during the period. Finally, Dynamic Technology Lab Private Ltd bought a new position in Wendy’s during the second quarter worth approximately $137,000. Institutional investors and hedge funds own 81.02% of the company’s stock.
Wendy’s Company Profile
The Wendy’s Company is the parent company of its subsidiary holding company Wendy’s Restaurants, LLC (Wendy’s Restaurants). Wendy’s Restaurants is the parent company of Wendy’s International, LLC (Wendy’s), which is the owner and franchisor of the Wendy’s restaurant system in the United States. Wendy’s is the restaurant company specializing in the hamburger sandwich segment.
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