Wendy’s (NASDAQ:WEN) Price Target Raised to $8.00

Wendy’s (NASDAQ:WEN) had its target price increased by Royal Bank Of Canada from $7.00 to $8.00 in a research report released on Monday morning, Marketbeat Ratings reports. The brokerage currently has a sector perform rating on the restaurant operator’s stock.

A number of other brokerages have also issued reports on WEN. BMO Capital Markets reissued a “market perform” rating on shares of Wendy’s in a research note on Friday, November 6th. Citigroup boosted their price target on shares of Wendy’s from $6.75 to $8.00 and gave the company a “neutral” rating in a report on Friday, November 6th. Argus downgraded shares of Wendy’s from a “buy” rating to a “sell” rating in a research note on Thursday, October 29th. Seaport Research Partners began coverage on shares of Wendy’s in a research note on Wednesday, September 16th. They issued a “neutral” rating on the stock. Finally, Stephens increased their price objective on Wendy’s from $7.00 to $8.00 and gave the stock an “equal weight” rating in a report on Friday, November 6th. One investment analyst has rated the stock with a Buy rating, ten have given a Hold rating and six have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Reduce” and a consensus target price of $7.56.

Wendy’s Stock Performance

Shares of NASDAQ WEN opened at $8.34 on Monday. The company has a current ratio of 1.89, a quick ratio of 1.87 and a debt-to-equity ratio of 27.00. Wendy’s has a one year low of $5.94 and a one year high of $9.45. The business has a 50-day moving average price of $6.96 and a two-hundred day moving average price of $7.36. The firm has a market capitalization of $1.59 billion, a PE ratio of 16.35, a PEG ratio of 1.50 and a beta of 0.37.

Wendy’s (NASDAQ:WEN) last issued its earnings results on Thursday, November 5th. The restaurant operator reported $0.13 earnings per share for the quarter, beating analysts’ consensus estimates of $0.09 by $0.04. The company had revenue of $435.62 million for the quarter, compared to the consensus estimate of $531.28 million. Wendy’s had a return on equity of 93.77% and a net margin of 4.40%. The firm’s quarterly revenue was down .5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.24 EPS. As a group, analysts predict that Wendy’s will post 0.51 earnings per share for the current fiscal year.

Wendy’s Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be issued a $0.07 dividend. The ex-dividend date is Tuesday, December 1st. This represents a $0.28 dividend on an annualized basis and a yield of 3.4%. Wendy’s’s dividend payout ratio is currently 54.90%.

Hedge Funds Weigh In On Wendy’s

Several hedge funds and other institutional investors have recently added to or reduced their stakes in WEN. Global Retirement Partners LLC acquired a new stake in Wendy’s in the second quarter valued at approximately $27,000. Cassaday & Co Wealth Management LLC acquired a new position in shares of Wendy’s during the 1st quarter worth $30,000. Nykredit A S acquired a new position in shares of Wendy’s during the 2nd quarter worth $37,000. Sterling Capital Management LLC raised its holdings in shares of Wendy’s by 630.5% during the 3rd quarter. Sterling Capital Management LLC now owns 5,245 shares of the restaurant operator’s stock valued at $33,000 after purchasing an additional 4,527 shares in the last quarter. Finally, Covestor Ltd raised its holdings in shares of Wendy’s by 21.7% during the 2nd quarter. Covestor Ltd now owns 9,643 shares of the restaurant operator’s stock valued at $80,000 after purchasing an additional 1,720 shares in the last quarter. Institutional investors own 85.96% of the company’s stock.

Key Wendy’s News

These are some of the WEN news items that stood out recently:

• Positive Sentiment: A comparison with McDonald’s describes Wendy’s as a riskier turnaround investment, but notes the stock has recently gained momentum and may offer more upside if the recovery succeeds. McDonald’s vs. Wendy’s: What’s the Better Fast-Food Stock to Buy Right Now?
• Neutral Sentiment: A free small Frosty promotion for November 15 may encourage customer visits and engagement, but the coverage does not indicate a material financial impact. Wendy’s Frosty Day is Nov. 15: How to get a free small Frosty
• Negative Sentiment: A review of Wendy’s new $8 value meal was critical, raising questions about whether its value offering will satisfy customers. It is an individual review, not broad evidence of consumer response. I tried Wendy’s new $8 value meal

Wendy’s Company Profile

The Wendy’s Company operates and franchises quick-service restaurants under the Wendy’s name. Founded by Dave Thomas in Columbus, Ohio, in 1969, the chain is known for hamburgers made with fresh, never-frozen beef in the United States, along with chicken sandwiches, nuggets, fries, salads and its signature Frosty dessert. Wendy’s restaurants also offer breakfast items and a range of beverages. The company serves customers in the United States and international markets through a mix of company-operated and franchised locations.