Wendy’s Sees Unusually Large Options Volume (NASDAQ:WEN)

The Wendy’s Company (NASDAQ:WEN) was the target of some unusual options trading on Wednesday. Traders bought 25,431 call options on the stock. This is an increase of 79% compared to the average daily volume of 14,245 call options.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the stock. Deutsche Bank Aktiengesellschaft set a $8.00 price target on shares of Wendy’s in a research note on Tuesday. Truist Financial lowered their target price on shares of Wendy’s from $11.00 to $10.00 and set a “buy” rating on the stock in a research report on Tuesday. Royal Bank Of Canada dropped their target price on shares of Wendy’s from $8.50 to $8.00 and set a “sector perform” rating for the company in a report on Tuesday. Argus raised Wendy’s to a “hold” rating in a research note on Wednesday, January 21st. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of Wendy’s in a report on Wednesday, January 21st. One 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 stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $9.39.

Wendy’s News Roundup

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

• Positive Sentiment: Trian / Nelson Peltz signaled increased engagement and that it sees Wendy’s as undervalued — a classic activist catalyst that can unlock value via strategic moves or a sale. Wendy’s Shares Heat Up on Trian Disclosure
• Positive Sentiment: High-profile media coverage and quotes from Peltz calling WEN “undervalued” have amplified investor attention and optimism about near-term upside or takeover interest. Wendy’s Stock Surges After Billionaire Nelson Peltz Calls It Undervalued
• Positive Sentiment: Derivative activity skewed bullish today — a surge in call buying and much higher-than-normal volume — which amplifies upward price momentum and signals speculative/trader conviction.
• Neutral Sentiment: Wendy’s issued a measured statement that the board regularly reviews strategy to maximize shareholder value; that neither confirms nor rules out specific actions. The Wendy’s Company Comments on Amended 13D Filing from Trian Partners
• Neutral Sentiment: Reports note Trian has talked with financing sources and partners about possible deals; this raises uncertainty — outcomes could range from a board settlement to an outright takeover or stake sale. Wendy’s shares soar 15% after billionaire Nelson Peltz says stock is undervalued
• Negative Sentiment: Underlying fundamentals are weak: recent soft guidance, lower revenues, and plans to close hundreds of U.S. locations have pressured sentiment and led to analyst downgrades/price-target cuts. Wendy’s stock sinks to six-year low after soft outlook
• Negative Sentiment: Earlier unusual put buying and multiple analyst downgrades indicate real downside risk if activist momentum fades or operational trends don’t improve.

Wendy’s Trading Up 16.9%

Shares of Wendy’s stock opened at $8.18 on Thursday. Wendy’s has a 1 year low of $6.73 and a 1 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. The business has a 50 day moving average price of $8.15 and a 200 day moving average price of $8.89. The company has a market capitalization of $1.56 billion, a P/E ratio of 9.62, a P/E/G ratio of 1.97 and a beta of 0.38.

Wendy’s (NASDAQ:WEN) last announced its earnings results on Friday, February 13th. The restaurant operator reported $0.16 EPS for the quarter, beating analysts’ consensus estimates of $0.14 by $0.02. Wendy’s had a return on equity of 145.93% and a net margin of 7.58%.The firm had revenue of $439.60 million for the quarter, compared to analysts’ expectations of $537.11 million. During the same quarter in the prior year, the firm earned $0.25 EPS. Wendy’s’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. Sell-side analysts anticipate that Wendy’s will post 0.99 EPS for the current fiscal year.

Wendy’s Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Monday, March 2nd will be given a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a yield of 6.8%. The ex-dividend date is Monday, March 2nd. Wendy’s’s dividend payout ratio (DPR) is currently 65.88%.

Institutional Investors Weigh In On Wendy’s

Several hedge funds have recently modified their holdings of the company. United Services Automobile Association acquired a new position in shares of Wendy’s in the first quarter valued at approximately $161,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Wendy’s by 1.8% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 639,085 shares of the restaurant operator’s stock worth $9,350,000 after acquiring an additional 11,072 shares during the period. Vanguard Personalized Indexing Management LLC grew its stake in Wendy’s by 5.6% in the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 24,038 shares of the restaurant operator’s stock worth $275,000 after acquiring an additional 1,276 shares during the period. Sequoia Financial Advisors LLC acquired a new position in Wendy’s in the 2nd quarter valued at $267,000. Finally, International Assets Investment Management LLC purchased a new position in shares of Wendy’s during the 2nd quarter worth $448,000. 85.96% of the stock is owned by institutional investors and hedge funds.

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.