Zacks Research Has Negative Estimate for Wendy’s Q1 Earnings

The Wendy’s Company (NASDAQ:WEN) – Analysts at Zacks Research decreased their Q1 2026 earnings per share estimates for shares of Wendy’s in a research report issued on Friday, February 27th. Zacks Research analyst Team now anticipates that the restaurant operator will post earnings per share of $0.13 for the quarter, down from their previous forecast of $0.18. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Wendy’s’ current full-year earnings is $0.99 per share. Zacks Research also issued estimates for Wendy’s’ Q2 2026 earnings at $0.18 EPS, Q3 2026 earnings at $0.15 EPS, Q4 2026 earnings at $0.14 EPS, Q1 2027 earnings at $0.15 EPS, Q2 2027 earnings at $0.21 EPS, Q3 2027 earnings at $0.16 EPS, Q4 2027 earnings at $0.17 EPS and FY2028 earnings at $0.75 EPS.

Wendy’s (NASDAQ:WEN) last issued its quarterly earnings data 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 net margin of 7.58% and a return on equity of 145.93%. The company’s revenue was down 5.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.25 earnings per share. Wendy’s has set its FY 2026 guidance at 0.560-0.600 EPS.

WEN has been the topic of a number of other research reports. Wall Street Zen lowered shares of Wendy’s from a “hold” rating to a “sell” rating in a research note on Saturday, February 21st. Mizuho lowered their price target on Wendy’s from $8.00 to $7.00 and set an “underperform” rating on the stock in a research report on Friday, January 9th. UBS Group dropped their price objective on Wendy’s from $8.50 to $7.50 and set a “neutral” rating on the stock in a research note on Tuesday, February 17th. Argus raised Wendy’s to a “hold” rating in a research note on Wednesday, January 21st. Finally, Truist Financial dropped their price target 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, February 17th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, sixteen have issued a Hold rating and five have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $9.30.

Wendy’s Stock Down 1.0%

WEN stock opened at $7.66 on Monday. The firm’s 50-day moving average is $8.07 and its two-hundred day moving average is $8.77. The company has a market capitalization of $1.46 billion, a price-to-earnings ratio of 9.01, a price-to-earnings-growth ratio of 2.16 and a beta of 0.38. Wendy’s has a 52 week low of $6.73 and a 52 week high of $15.83. 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 Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 2nd will be issued a dividend of $0.14 per share. The ex-dividend date is Monday, March 2nd. This represents a $0.56 dividend on an annualized basis and a dividend yield of 7.3%. Wendy’s’s payout ratio is currently 65.88%.

Institutional Investors Weigh In On Wendy’s

Hedge funds have recently bought and sold shares of the business. Marshall Wace LLP acquired a new position in Wendy’s in the 3rd quarter valued at approximately $36,912,000. AQR Capital Management LLC grew its holdings in shares of Wendy’s by 38.1% during 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 acquiring an additional 3,227,366 shares in the last quarter. Wells Fargo & Company MN increased its stake in shares of Wendy’s by 258.6% in the fourth quarter. Wells Fargo & Company MN now owns 4,224,648 shares of the restaurant operator’s stock worth $35,191,000 after acquiring an additional 3,046,517 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of 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 acquiring an additional 1,915,465 shares during the last quarter. Finally, Norges Bank purchased a new stake in shares of Wendy’s during the second quarter worth $18,929,000. 85.96% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Wendy’s

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

• Positive Sentiment: Planned closures to improve profitability — Wendy’s will close roughly 5–6% of U.S. locations in 2026 as it reshapes its footprint, while selectively opening new units around Sarasota; trimming underperforming restaurants should improve margins and unit-level returns. Wendy’s closing up to 6% …
• Positive Sentiment: Activist/strategic upside — long-time large shareholder Nelson Peltz is publicly weighing options to enhance value (including possible M&A or other actions). That raises the chance of shareholder‑friendly moves that could support a valuation re-rate. Wendy’s Is Down Sharply—Is the Dividend a Bargain or Value Trap?
• Neutral Sentiment: High yield but mixed sustainability — the dividend yields roughly 7.2% after a 2025 cut; MarketBeat notes the payout (~$106M) appears affordable under guidance but the payout ratio (~66%) and lower free cash flow add uncertainty for income‑focused investors. Wendy’s Is Down Sharply—Is the Dividend a Bargain or Value Trap?
• Neutral Sentiment: Featured in dividend roundups — included in lists of high-yield names, which can attract income investors but also signal elevated risk; this may provide episodic buying interest but not steady support. Five Dividends Up to 15% …
• Negative Sentiment: Very weak same-store sales and cautious guidance — Q4 results beat on EPS but same-store sales fell to the worst level in ~20 years; FY‑2026 guidance (adjusted EPS 0.56–0.60, down sharply) and lowered FCF targets indicate near-term earnings and cash flow pressure.
• Negative Sentiment: Analyst cuts and Hold stance — Zacks has trimmed multiple quarterly and annual EPS estimates across 2026–2028 and keeps a “Hold” view, signaling that sell‑side expectations are moving lower and reducing near-term analyst support.
• Negative Sentiment: Technical/market sentiment is weak — stock sits near its 52‑week low, has been in a prolonged downtrend and faces technical resistance around the 20‑day/50‑day moving averages, making a convincing rebound less likely without fundamental improvement. Wendy’s Is Down Sharply—Is the Dividend a Bargain or Value Trap?

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.