Wendy’s (NASDAQ:WEN) Shares Down 9.7% Following Analyst Downgrade

The Wendy’s Company (NASDAQ:WEN) shares were down 9.7% on Tuesday 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 $6.74 and last traded at $6.7550. Approximately 7,423,873 shares changed hands during trading, a decline of 5% from the average daily volume of 7,842,782 shares. The stock had previously closed at $7.48.

Several other equities research analysts also recently weighed in on the stock. The Goldman Sachs Group decreased their price target on shares of Wendy’s from $8.00 to $7.00 and set a “sell” rating for the company in a research note on Tuesday. Stifel Nicolaus set a $8.00 target price on Wendy’s in a research note on Monday. Deutsche Bank Aktiengesellschaft set a $8.00 target price on Wendy’s in a research report on Tuesday. Argus upgraded Wendy’s to a “hold” rating in a report on Wednesday, January 21st. Finally, JPMorgan Chase & Co. restated a “neutral” rating and set a $9.00 price objective (down previously from $12.00) on shares of Wendy’s in a report on Wednesday, December 3rd. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, sixteen have given a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $9.39.

More Wendy’s News

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 Inflows and Outflows

Several hedge funds have recently modified their holdings of WEN. Blueshift Asset Management LLC purchased a new stake in Wendy’s in the second quarter worth $2,428,000. Intech Investment Management LLC increased its holdings in Wendy’s by 81.2% in the 2nd quarter. Intech Investment Management LLC now owns 348,245 shares of the restaurant operator’s stock worth $3,977,000 after acquiring an additional 156,068 shares during the last quarter. Norges Bank bought a new stake in Wendy’s in the 2nd quarter valued at about $18,929,000. International Assets Investment Management LLC purchased a new stake in Wendy’s during the second quarter valued at about $448,000. Finally, Alps Advisors Inc. boosted its position in Wendy’s by 71.7% during the third quarter. Alps Advisors Inc. now owns 634,304 shares of the restaurant operator’s stock worth $5,810,000 after purchasing an additional 264,905 shares during the period. Hedge funds and other institutional investors own 85.96% of the company’s stock.

Wendy’s Price Performance

The stock has a market cap of $1.33 billion, a P/E ratio of 8.24, a price-to-earnings-growth ratio of 2.10 and a beta of 0.38. The company has a quick ratio of 1.74, a current ratio of 1.76 and a debt-to-equity ratio of 28.77. The business’s 50-day simple moving average is $8.15 and its two-hundred day simple moving average is $8.89.

Wendy’s (NASDAQ:WEN) last announced its quarterly 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 net margin of 7.58% and a return on equity of 145.93%. The company had revenue of $439.60 million for the quarter, compared to analysts’ expectations of $537.11 million. During the same period in the prior year, the company posted $0.25 EPS. Wendy’s’s revenue was down 5.5% compared to the same quarter last year. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. Sell-side analysts expect that The Wendy’s Company will post 0.99 EPS for the current year.

Wendy’s Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 2nd will be given 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 payout ratio is 65.88%.

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.