Wendy’s (NASDAQ:WEN) Sets New 1-Year Low After Analyst Downgrade

The Wendy’s Company (NASDAQ:WEN)’s share price hit a new 52-week low 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 changing hands. The stock had previously closed at $7.48.

Other research analysts have also recently issued research reports about the company. Truist Financial decreased their target price on Wendy’s from $11.00 to $10.00 and set a “buy” rating for the company in a research note on Tuesday. Deutsche Bank Aktiengesellschaft set a $8.00 price objective on shares of Wendy’s in a research report on Tuesday. BMO Capital Markets dropped their target price on shares of Wendy’s from $11.00 to $9.00 and set a “market perform” rating on the stock in a report on Tuesday. The Goldman Sachs Group reduced their target price on shares of Wendy’s from $8.00 to $7.00 and set a “sell” rating for the company in a report on Tuesday. Finally, Argus raised Wendy’s to a “hold” rating in a report on Wednesday, January 21st. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, sixteen have issued a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus 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: Cheap valuation and rebound potential: several writeups argue WEN is deeply valued vs. peers and could rally if comps and margins stabilize — this is a constructive long‑term note for value investors. Wendy’s Stock Is Cheap, But Can the Turnaround Actually Work?
• Positive Sentiment: Some analysts still see upside: Truist trimmed its price target but maintained a Buy rating, indicating there are analysts who expect a recovery if execution improves. WEN price target lowered by Truist
• Positive Sentiment: Promotions and seasonal menu tie‑ins continue (Thin Mints Frosty), which help traffic and community engagement in the near term. The Iconic Duo Returns: Wendy’s Thin Mints Frosty Is Back
• Neutral Sentiment: Mixed analyst moves: RBC and BMO lowered price targets and shifted to more conservative ratings (sector/market perform), compressing near‑term sentiment even where some firms remain constructive on upside. Benzinga coverage of analyst target changes
• Negative Sentiment: Soft outlook and guidance: the company issued a weaker outlook and warned U.S. comps remain pressured, a primary catalyst for today’s selloff. Wendy’s Stock Sinks To Six-Year Low After Soft Outlook
• Negative Sentiment: Large-scale closures announced (~300 U.S. locations): management plans to close hundreds of underperforming restaurants to refocus the footprint, which highlights weak U.S. performance and raises short‑term comps, execution and cash‑flow concerns. Wendy’s to close roughly 300 US locations
• Negative Sentiment: Investor sentiment turned sharply negative: unusually heavy put buying and elevated short interest signal hedging/speculative bearish bets that can accelerate selling pressure. (Options flow reported intraday.)
• Negative Sentiment: Critical coverage and downgrades: multiple bearish takes and at least one downgrade argue Wendy’s is losing share in key categories, increasing the risk of further margin pressure and potential dividend/buyback cuts. Why Wendy’s Stock Tanked on Tuesday Wendy’s: Falling Sharply Behind In Fast Food Wars (Seeking Alpha)

Institutional Trading of Wendy’s

Several large investors have recently added to or reduced their stakes in WEN. Elevation Point Wealth Partners LLC acquired a new stake in shares of Wendy’s in the second quarter worth $25,000. Investors Research Corp purchased a new stake in Wendy’s in the 3rd quarter worth about $27,000. Versant Capital Management Inc boosted its position in Wendy’s by 19,693.8% during the 3rd quarter. Versant Capital Management Inc now owns 3,167 shares of the restaurant operator’s stock worth $29,000 after acquiring an additional 3,151 shares during the period. MassMutual Private Wealth & Trust FSB grew its stake in Wendy’s by 205.0% during the 3rd 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 in the last quarter. Finally, Hilton Head Capital Partners LLC purchased a new position in Wendy’s during the 4th quarter valued at about $30,000. 85.96% of the stock is owned by institutional investors and hedge funds.

Wendy’s Stock Down 6.4%

The business has a fifty day moving average price of $8.15 and a two-hundred day moving average price of $8.89. The company has a current ratio of 1.76, a quick ratio of 1.74 and a debt-to-equity ratio of 28.77. The company has a market cap of $1.33 billion, a price-to-earnings ratio of 8.24, a P/E/G ratio of 2.10 and a beta of 0.38.

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

Wendy’s Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Monday, March 2nd will be issued a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 8.0%. The ex-dividend date is Monday, March 2nd. Wendy’s’s dividend payout ratio (DPR) is currently 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.