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 on Friday.
According to Zacks, “Wendy’s shares have outpaced the industry year to date. The company’s second-quarter 2017 adjusted earnings of $0.15 per share topped the Zacks Consensus Estimate by 15.4%. Notably, earnings jumped 50% year over year (y/y) owingto the company’s system optimization initiative. Meanwhile, revenues of $320.3 million surpassed the consensus mark by 7.2% but slumped 16.3% y/y. Revenues have been declining y/y over the past few quarters due to reduced number of company-operated restaurants. Though Wendy’s transition to a franchise-based business model has been weighing on revenues, it is expected to lower the company’s G&A expenses, thereby boosting earnings, 2017 onwards. Initiatives like its Image Activation program along with focus on menu innovation delivery, technology-related offerings and global expansion also bode well. Yet, higher labor and commodity costs as well as a soft industry backdrop remain concerns.”
A number of other analysts have also weighed in on WEN. BMO Capital Markets started coverage on shares of Wendy’s Company (The) in a report on Friday, April 21st. They set an “outperform” rating and a $17.00 target price for the company. Vetr upgraded shares of Wendy’s Company (The) from a “hold” rating to a “strong-buy” rating and set a $16.92 target price for the company in a report on Wednesday, April 26th. Stephens increased their target price on shares of Wendy’s Company (The) from $16.00 to $18.00 and gave the stock an “overweight” rating in a report on Thursday, May 11th. SunTrust Banks, Inc. set a $18.00 target price on shares of Wendy’s Company (The) and gave the stock a “buy” rating in a report on Thursday, May 11th. Finally, Royal Bank Of Canada increased their target price on shares of Wendy’s Company (The) from $11.00 to $15.00 and gave the stock a “sector perform” rating in a report on Thursday, May 11th. One investment analyst has rated the stock with a sell rating, ten have issued a hold rating and eight have issued a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus price target of $15.56.
Shares of Wendy’s Company (WEN) traded up 0.79% on Friday, reaching $15.38. The company’s stock had a trading volume of 1,100,408 shares. The firm has a market cap of $3.76 billion, a price-to-earnings ratio of 39.95 and a beta of 0.97. Wendy’s Company has a 12 month low of $9.82 and a 12 month high of $16.66. The stock has a 50 day moving average of $15.55 and a 200-day moving average of $14.72.
Wendy’s Company (The) (NASDAQ:WEN) last announced its quarterly earnings data on Wednesday, August 9th. The restaurant operator reported $0.15 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.13 by $0.02. Wendy’s Company (The) had a return on equity of 19.67% and a net margin of 7.68%. The firm had revenue of $320.34 million for the quarter. During the same period last year, the business posted $0.10 earnings per share. The firm’s quarterly revenue was down 16.3% compared to the same quarter last year. On average, analysts anticipate that Wendy’s Company will post $0.47 EPS for the current year.
In related news, major shareholder Trian Partners Parallel Fund I sold 5,500,000 shares of the firm’s stock in a transaction that occurred on Monday, June 5th. The shares were sold at an average price of $15.97, for a total transaction of $87,835,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 26.50% of the stock is owned by company insiders.
Several large investors have recently made changes to their positions in WEN. Tyers Asset Management LLC increased its stake in Wendy’s Company (The) by 1.3% in the first quarter. Tyers Asset Management LLC now owns 7,568 shares of the restaurant operator’s stock worth $103,000 after buying an additional 96 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in Wendy’s Company (The) by 10.2% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 7,495 shares of the restaurant operator’s stock worth $116,000 after buying an additional 692 shares during the period. Elkfork Partners LLC increased its stake in Wendy’s Company (The) by 1.3% in the first quarter. Elkfork Partners LLC now owns 10,406 shares of the restaurant operator’s stock worth $142,000 after buying an additional 132 shares during the period. Riverhead Capital Management LLC increased its stake in Wendy’s Company (The) by 75.7% in the second quarter. Riverhead Capital Management LLC now owns 9,312 shares of the restaurant operator’s stock worth $144,000 after buying an additional 4,012 shares during the period. Finally, Weiss Asset Management LP bought a new stake in Wendy’s Company (The) during the first quarter worth approximately $150,000. 77.76% of the stock is owned by institutional investors.
About Wendy’s Company (The)
The Wendy’s Company is the parent company of 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 a restaurant company specializing in the hamburger sandwich segment.
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