Beyond The Numbers: 11 Analysts Discuss Wendy's Stock

Ratings for Wendy's WEN were provided by 11 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts have set 12-month price targets for Wendy's, revealing an average target of $16.09, a high estimate of $19.00, and a low estimate of $14.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 10.86%.

Breaking Down Analyst Ratings: A Detailed Examination

The analysis of recent analyst actions sheds light on the perception of Wendy's by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Wendy's. This information provides 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: Gaining insights, analysts provide estimates for the future value of Wendy's's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Wendy's's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with 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 $12.6 billion in 2024, narrowly edging Burger King ($11.5 billion) and clocking in well behind wide-moat McDonald's ($51.1 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 more than 7,200 total stores in 30 countries as of year-end 2024. 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 roughly 94% of stores, and through franchise flipping and advisory fees.

Wendy's's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Wendy's showcased positive performance, achieving a revenue growth rate of 6.22% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Wendy's's net margin excels beyond industry benchmarks, reaching 8.27%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Wendy's's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 18.3%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Wendy's's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.94%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Wendy's's debt-to-equity ratio stands notably higher than the industry average, reaching 15.78. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Understanding the Relevance of Analyst Ratings

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.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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