Wendy’s Target of Unusually High Options Trading (NASDAQ:WEN)

The Wendy’s Company (NASDAQ:WEN) was the target of some unusual options trading activity on Tuesday. Traders bought 155,655 put options on the stock. This is an increase of 1,156% compared to the average volume of 12,392 put options.

Key Headlines 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)

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. JPMorgan Chase & Co. restated a “neutral” rating and issued a $9.00 price target (down from $12.00) on shares of Wendy’s in a report on Wednesday, December 3rd. Truist Financial reduced their price target on Wendy’s from $11.00 to $10.00 and set a “buy” rating for the company in a research report on Tuesday. Stifel Nicolaus set a $8.00 price objective on shares of Wendy’s in a report on Monday. Zacks Research upgraded shares of Wendy’s from a “strong sell” rating to a “hold” rating in a report on Tuesday, November 11th. Finally, Barclays decreased their target price on shares of Wendy’s from $9.00 to $8.00 and set an “equal weight” rating for the company in a research report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, sixteen have given a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat.com, Wendy’s presently has an average rating of “Hold” and an average price target of $9.39.

Wendy’s Stock Performance

Shares of WEN stock opened at $7.00 on Wednesday. The stock has a market cap of $1.33 billion, a P/E ratio of 8.24, a P/E/G ratio of 2.10 and a beta of 0.38. The company has a fifty day moving average price of $8.15 and a two-hundred day moving average price of $8.89. Wendy’s has a one year low of $6.73 and a one year high of $16.20. The company has a debt-to-equity ratio of 28.77, a current ratio of 1.76 and a quick ratio of 1.74.

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

Wendy’s Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Monday, March 2nd will be paid a $0.14 dividend. The ex-dividend date is Monday, March 2nd. This represents a $0.56 annualized dividend and a dividend yield of 8.0%. Wendy’s’s dividend payout ratio is 65.88%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in WEN. Marshall Wace LLP acquired a new stake in Wendy’s during the third quarter worth approximately $36,912,000. AQR Capital Management LLC increased its position in shares of Wendy’s by 38.1% in the fourth quarter. AQR Capital Management LLC now owns 11,705,610 shares of the restaurant operator’s stock worth $97,508,000 after purchasing an additional 3,227,366 shares during the period. Wells Fargo & Company MN grew its stake in Wendy’s by 258.6% during the fourth quarter. Wells Fargo & Company MN now owns 4,224,648 shares of the restaurant operator’s stock worth $35,191,000 after buying an additional 3,046,517 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in Wendy’s by 61.3% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 5,041,012 shares of the restaurant operator’s stock valued at $57,568,000 after buying an additional 1,915,465 shares during the period. Finally, Norges Bank acquired a new position in shares of Wendy’s in the 2nd quarter valued at approximately $18,929,000. Institutional investors and hedge funds own 85.96% of the company’s stock.

Wendy’s Company Profile

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.