Navigating 4 Analyst Ratings For Wendy's

During the last three months, 4 analysts shared their evaluations of Wendy's WEN, revealing diverse outlooks from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $20.5, a high estimate of $22.00, and a low estimate of $19.00. Consistency is reflected as the current average remains at the same level as the previous average price target.

Diving into Analyst Ratings: An In-Depth Exploration

A clear picture of Wendy's's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Wendy's. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Wendy's compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Wendy's's stock. This examination reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Wendy's's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Wendy's analyst ratings.

Unveiling the Story Behind Wendy's

The Wendy's Company is the second-largest burger quick-service restaurant, or QSR, chain in the United States by systemwide sales, with $11.7 billion in 2022, narrowly edging Burger King ($10.3 billion) and clocking in well behind wide-moat McDonald's ($48.1 billion). After divestitures of Tim Hortons (2006) and Arby's (2011), the firm manages just the burger banner, generating sales across a footprint that spanned almost 7,100 total units in 30 countries as of year-end 2022. Wendy's generates revenue from the sale of hamburgers, chicken sandwiches, salads, and fries throughout its company-owned footprint, through franchise royalty and marketing fund payments remitted by its franchisees, which account for 94% of stores, and through franchise flipping and advisory fees.

Wendy's's Financial Performance

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Wendy's displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 3.38%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: Wendy's's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 10.54%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Wendy's's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.82% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Wendy's's ROA stands out, surpassing industry averages. With an impressive ROA of 1.09%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Wendy's's debt-to-equity ratio is notably higher than the industry average. With a ratio of 12.22, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.