Wendy’s Company (The) (WEN) Lowered to Hold at Zacks Investment Research

Wendy’s Company (The) (NASDAQ:WEN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.

According to Zacks, “Wendy’s shares have outperformed the Zacks categorized Retail–Restaurants industry over the past one year. Sales initiatives like menu innovation and promotional offerings are driving growth. Increased investments in technology should quicken service and thus, result in increased customer count. Reimaging of its restaurants is also expected to boost traffic and drive higher sales. Moreover, the company’s international business is poised to be a long-term growth driver. Yet, Wendy’s revenues have been declining year over year over the past few quarters due to reduction in the number of company-operated restaurants. Though transition to a franchise-based business model has been weighing on revenues in the near term, it would lower Wendy’s general and administrative expenses and in turn, boost earnings going forward. Yet, rising costs and a soft consumer spending environment in the U.S. restaurant space raises concern.”

WEN has been the subject of several other research reports. Vetr lowered shares of Wendy’s Company (The) from a “strong-buy” rating to a “buy” rating and set a $14.24 price objective for the company. in a research report on Tuesday, December 6th. J P Morgan Chase & Co reiterated a “hold” rating and set a $11.50 price objective on shares of Wendy’s Company (The) in a research report on Thursday, November 10th. Sanford C. Bernstein reiterated a “market perform” rating and set a $11.00 price objective on shares of Wendy’s Company (The) in a research report on Wednesday, December 7th. Stephens reiterated an “overweight” rating and set a $15.00 price objective on shares of Wendy’s Company (The) in a research report on Monday, December 19th. Finally, Longbow Research lowered shares of Wendy’s Company (The) from a “buy” rating to a “neutral” rating in a research report on Friday, January 6th. Ten research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and an average target price of $12.55.

Analyst Recommendations for Wendy`s Company (The) (NASDAQ:WEN)

Shares of Wendy’s Company (NASDAQ:WEN) traded up 0.96% during midday trading on Wednesday, hitting $13.63. 983,102 shares of the stock were exchanged. The firm has a 50 day moving average of $13.35 and a 200-day moving average of $11.05. Wendy’s Company has a 12 month low of $8.89 and a 12 month high of $14.07. The stock has a market cap of $3.50 billion, a P/E ratio of 19.81 and a beta of 0.86.

Wendy’s Company (The) (NASDAQ:WEN) last released its quarterly earnings data on Wednesday, November 9th. The company reported $0.11 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.10 by $0.01. Wendy’s Company (The) had a net margin of 11.74% and a return on equity of 16.62%. The business earned $364 million during the quarter, compared to analyst estimates of $350.35 million. During the same quarter last year, the business earned $0.09 earnings per share. Wendy’s Company (The)’s quarterly revenue was down 21.7% compared to the same quarter last year. Equities research analysts anticipate that Wendy’s Company will post $0.41 EPS for the current year.

The firm also recently announced a quarterly dividend, which was paid on Thursday, December 15th. Shareholders of record on Thursday, December 1st were issued a dividend of $0.065 per share. This represents a $0.26 annualized dividend and a yield of 1.93%. This is a boost from Wendy’s Company (The)’s previous quarterly dividend of $0.06. The ex-dividend date was Tuesday, November 29th. Wendy’s Company (The)’s dividend payout ratio is presently 38.24%.

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In other Wendy’s Company (The) news, major shareholder Edward P. Garden bought 3,743,384 shares of the company’s stock in a transaction on Tuesday, December 6th. The shares were bought at an average cost of $12.79 per share, for a total transaction of $47,877,881.36. Following the acquisition, the insider now directly owns 240,365 shares in the company, valued at $3,074,268.35. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 22.70% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Eminence Capital LP acquired a new position in shares of Wendy’s Company (The) during the second quarter valued at about $55,854,000. Victory Capital Management Inc. boosted its position in shares of Wendy’s Company (The) by 8,715.3% in the third quarter. Victory Capital Management Inc. now owns 3,842,329 shares of the company’s stock valued at $41,498,000 after buying an additional 3,798,742 shares during the last quarter. Mik Capital LLC acquired a new position in shares of Wendy’s Company (The) during the third quarter valued at about $27,827,000. Wells Fargo & Company MN boosted its position in shares of Wendy’s Company (The) by 20.0% in the third quarter. Wells Fargo & Company MN now owns 11,144,547 shares of the company’s stock valued at $120,362,000 after buying an additional 1,860,404 shares during the last quarter. Finally, RS Investment Management Co. LLC boosted its position in shares of Wendy’s Company (The) by 87.2% in the second quarter. RS Investment Management Co. LLC now owns 3,276,030 shares of the company’s stock valued at $31,515,000 after buying an additional 1,526,300 shares during the last quarter. Institutional investors own 83.58% of the company’s stock.

Wendy’s Company (The) Company Profile

The Wendy’s Company is the parent company of its subsidiary holding company Wendy’s Restaurants, LLC (Wendy’s Restaurants). Wendy’s Restaurants is the parent company of Wendy’s International, LLC (Wendy’s), which is the owner and franchisor of the Wendy’s restaurant system in the United States. Wendy’s is the restaurant company specializing in the hamburger sandwich segment.

5 Day Chart for NASDAQ:WEN

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