Wendy’s (NASDAQ:WEN) Lowered to Sell Rating by Wall Street Zen

Wendy’s (NASDAQ:WEN) was downgraded by equities researchers at Wall Street Zen from a “hold” rating to a “sell” rating in a research note issued to investors on Saturday.

Other equities analysts have also issued reports about the stock. Barclays reduced their target price on shares of Wendy’s from $9.00 to $8.00 and set an “equal weight” rating on the stock in a research report on Tuesday. UBS Group decreased their price objective on Wendy’s from $8.50 to $7.50 and set a “neutral” rating on the stock in a research report on Tuesday. BMO Capital Markets lowered their target price on Wendy’s from $11.00 to $9.00 and set a “market perform” rating for the company in a research note on Tuesday. The Goldman Sachs Group cut their price target on Wendy’s from $8.00 to $7.00 and set a “sell” rating on the stock in a research note on Tuesday. Finally, JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $9.00 price target (down previously from $12.00) on shares of Wendy’s in a report on Wednesday, December 3rd. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, sixteen have assigned a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $9.39.

Wendy’s Trading Down 2.8%

Shares of WEN opened at $8.09 on Friday. The stock has a fifty day moving average price of $8.14 and a two-hundred day moving average price of $8.87. The company has a debt-to-equity ratio of 28.77, a quick ratio of 1.74 and a current ratio of 1.76. The company has a market cap of $1.54 billion, a price-to-earnings ratio of 9.52, a PEG ratio of 2.32 and a beta of 0.38. Wendy’s has a 52-week low of $6.73 and a 52-week high of $16.20.

Wendy’s (NASDAQ:WEN) last announced its 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 company had revenue of $439.60 million during the quarter, compared to analyst estimates of $537.11 million. Wendy’s had a return on equity of 145.93% and a net margin of 7.58%.The firm’s quarterly revenue was down 5.5% compared to the same quarter last year. During the same period last year, the company posted $0.25 earnings per share. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS. Analysts predict that Wendy’s will post 0.99 EPS for the current fiscal year.

Institutional Trading of Wendy’s

Hedge funds have recently modified their holdings of the company. Invesco Ltd. grew its holdings in Wendy’s by 22.5% during the fourth quarter. Invesco Ltd. now owns 1,083,789 shares of the restaurant operator’s stock valued at $9,028,000 after purchasing an additional 199,053 shares during the period. Mercer Global Advisors Inc. ADV boosted its position in shares of Wendy’s by 20.4% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 98,911 shares of the restaurant operator’s stock worth $824,000 after purchasing an additional 16,725 shares in the last quarter. State of Tennessee Department of Treasury acquired a new position in shares of Wendy’s in the 4th quarter valued at $279,000. EP Wealth Advisors LLC bought a new stake in shares of Wendy’s in the 4th quarter valued at $135,000. Finally, NewEdge Advisors LLC raised its stake in Wendy’s by 14.6% during the 4th quarter. NewEdge Advisors LLC now owns 12,898 shares of the restaurant operator’s stock worth $107,000 after buying an additional 1,647 shares during the period. 85.96% of the stock is currently owned by institutional investors and hedge funds.

Wendy’s News Summary

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

• Positive Sentiment: Nelson Peltz is reportedly again considering an outright purchase of Wendy’s, which elevates takeover premium speculation and can support a bid floor under the stock. Billionaire Nelson Peltz Once Again Considers Buying Wendy’s Outright
• Positive Sentiment: Unusually high options volume and reports of heavy call buying suggest some traders are positioning for an upside move or takeover event — a short‑term bullish technical signal. Traders Purchase High Volume of Wendy’s Call Options (NASDAQ:WEN)
• Positive Sentiment: Analyst/independent bullish takes (e.g., Seeking Alpha) argue the market is overreacting to a “reset” and recommend buying the dip — this can attract value investors given the stock’s depressed multiple. Wendy’s: The Market Hates The Reset – I’m Buying It
• Positive Sentiment: Menu promotions and tie‑ins (Thin Mints Frosty return, other seasonal sandwich rollouts) help traffic and same‑store sales in the near term and improve consumer engagement. Wendy’s teams up with Girl Scouts again and the new Thin Mints Frosty flavor is a game changer
• Positive Sentiment: Short-term promotions like a chili giveaway and the reintroduction of a favored seasonal sandwich can boost digital orders and traffic during promotional windows. Wendy’s Just Brought Back Our Favorite Seasonal Sandwich
• Neutral Sentiment: Local coverage (e.g., Wisconsin pieces) is informing customers about potential nearby closures — important operational detail but limited market impact unless closures are widespread. Wendy’s plans to close more locations. Are any in Wisconsin?
• Negative Sentiment: Wendy’s confirmed a major 2026 portfolio reset, closing up to ~6% of U.S. locations (hundreds of restaurants). That signals near‑term revenue headwinds and potential franchise disruption, pressuring growth expectations. Wendy’s closing up to 6% of US locations in first half of 2026
• Negative Sentiment: Several brokers (RBC, Truist, BMO) cut expectations or price targets and coverage notes; one report tied a nearly 10% intraday share drop to analyst downgrades — these hits directly pressure sentiment and valuations. Wendy’s (NASDAQ:WEN) Stock Price Down 9.7% Following Analyst Downgrade

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.