What 10 Analyst Ratings Have To Say About Wendy's

In the preceding three months, 10 analysts have released ratings for Wendy's WEN, presenting a wide array of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments 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 $20.1, a high estimate of $22.00, and a low estimate of $19.00. A decline of 8.64% from the prior average price target is evident in the current average.

Decoding Analyst Ratings: A Detailed Look

A comprehensive examination of how financial experts perceive Wendy's is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Wendy's. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Wendy's compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Wendy's's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Wendy's's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Wendy's analyst ratings.

All You Need to Know About 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 $12.3 billion in 2023, narrowly edging Burger King ($11.5 billion) and clocking in well behind wide-moat McDonald's ($53.1 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 7,157 total stores in 30 countries as of year-end 2023. 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.

Financial Insights: Wendy's

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Wendy's displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 0.77%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 8.68%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Wendy's's ROE excels beyond industry benchmarks, reaching 14.39%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Wendy's's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.9%, the company showcases efficient use of assets and strong financial health.

Debt Management: Wendy's's debt-to-equity ratio stands notably higher than the industry average, reaching 13.36. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per 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.

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