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 Monday. Stock traders bought 75,750 put options on the stock. This is an increase of 472% compared to the average daily volume of 13,237 put options.

Wendy’s Trading Up 1.0%

NASDAQ WEN opened at $7.16 on Tuesday. The company has a current ratio of 1.76, a quick ratio of 1.74 and a debt-to-equity ratio of 28.77. Wendy’s has a 1-year low of $6.73 and a 1-year high of $15.40. The firm’s fifty day simple moving average is $7.70 and its 200-day simple moving average is $8.40. The company has a market capitalization of $1.36 billion, a PE ratio of 8.42, a price-to-earnings-growth ratio of 1.99 and a beta of 0.38.

Wendy’s (NASDAQ:WEN) last released its quarterly earnings data on Friday, February 13th. The restaurant operator reported $0.16 earnings per share (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 during the quarter, compared to analysts’ expectations of $537.11 million. During the same quarter last year, the firm earned $0.25 earnings per share. The business’s revenue for the quarter was down 5.5% on a year-over-year basis. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. As a group, sell-side analysts anticipate that Wendy’s will post 0.99 earnings per share for the current fiscal year.

Wendy’s Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 16th. Investors of record on Monday, March 2nd were issued a $0.14 dividend. The ex-dividend date was Monday, March 2nd. This represents a $0.56 dividend on an annualized basis and a yield of 7.8%. Wendy’s’s dividend payout ratio is currently 65.88%.

Hedge Funds Weigh In On Wendy’s

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Marshall Wace LLP bought a new stake in Wendy’s in the third quarter worth approximately $36,912,000. AQR Capital Management LLC lifted its stake in shares of Wendy’s by 38.1% in the 4th quarter. AQR Capital Management LLC now owns 11,705,610 shares of the restaurant operator’s stock valued at $97,508,000 after purchasing an additional 3,227,366 shares during the last quarter. Wells Fargo & Company MN lifted its stake in shares of Wendy’s by 258.6% in the 4th quarter. Wells Fargo & Company MN now owns 4,224,648 shares of the restaurant operator’s stock valued at $35,191,000 after purchasing an additional 3,046,517 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in Wendy’s by 61.3% in the second quarter. Arrowstreet Capital Limited Partnership now owns 5,041,012 shares of the restaurant operator’s stock worth $57,568,000 after purchasing an additional 1,915,465 shares in the last quarter. Finally, Norges Bank bought a new stake in Wendy’s in the second quarter worth $18,929,000. Institutional investors own 85.96% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have issued reports on WEN. JPMorgan Chase & Co. decreased their price target on shares of Wendy’s from $9.00 to $7.00 and set a “neutral” rating on the stock in a research report on Monday, February 23rd. Wall Street Zen downgraded Wendy’s from a “hold” rating to a “sell” rating in a research report on Saturday, February 21st. The Goldman Sachs Group decreased their target price on Wendy’s from $8.00 to $7.00 and set a “sell” rating on the stock in a report on Tuesday, February 17th. BMO Capital Markets cut their target price on Wendy’s from $11.00 to $9.00 and set a “market perform” rating on the stock in a research report on Tuesday, February 17th. Finally, Mizuho reduced their target price on Wendy’s from $8.00 to $7.00 and set an “underperform” rating for the company in a report on Friday, January 9th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, fifteen have issued a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat, Wendy’s has a consensus rating of “Hold” and an average price target of $9.00.

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.