A Glimpse Into The Expert Outlook On Wendy's Through 19 Analysts

Across the recent three months, 19 analysts have shared their insights on Wendy's WEN, expressing a variety of opinions spanning from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $15.82, with a high estimate of $19.00 and a low estimate of $14.00. A 5.16% drop is evident in the current average compared to the previous average price target of $16.68.

Deciphering Analyst Ratings: An In-Depth Analysis

In examining recent analyst actions, we gain insights into how financial experts perceive Wendy's. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Chris O'Cull |Stifel |Lowers |Hold | $14.00|$16.00 | |Jim Salera |Stephens & Co. |Maintains |Equal-Weight | $15.00|$15.00 | |Jon Tower |Citigroup |Raises |Neutral | $16.50|$15.50 | |Dennis Geiger |UBS |Raises |Neutral | $16.00|$15.00 | |Jeffrey Bernstein |Barclays |Raises |Equal-Weight | $17.00|$16.00 | |Nick Setyan |Wedbush |Maintains |Neutral | $16.00|$16.00 | |Jim Salera |Stephens & Co. |Maintains |Equal-Weight | $15.00|$15.00 | |Andrew Charles |TD Securities |Maintains |Hold | $16.00|$16.00 | |Jim Salera |Stephens & Co. |Maintains |Equal-Weight | $15.00|$15.00 | |Logan Reich |RBC Capital |Maintains |Sector Perform | $17.00|$17.00 | |John Ivankoe |JP Morgan |Lowers |Neutral | $17.00|$20.00 | |Chris O'Cull |Stifel |Lowers |Hold | $16.00|$17.00 | |Jake Bartlett |Truist Securities |Lowers |Buy | $19.00|$22.00 | |Jeffrey Bernstein |Barclays |Lowers |Equal-Weight | $16.00|$17.00 | |Jim Salera |Stephens & Co. |Maintains |Equal-Weight | $15.00|$15.00 | |Nick Setyan |Wedbush |Raises |Neutral | $16.00|$15.50 | |Jim Salera |Stephens & Co. |Maintains |Equal-Weight | $15.00|$15.00 | |Christine Cho |Goldman Sachs |Lowers |Sell | $15.00|$17.00 | |John Glass |Morgan Stanley |Lowers |Underweight | $14.00|$22.00 |

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: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Wendy's compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Wendy's's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Wendy's's market position. Stay informed and make well-informed decisions with 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 $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: Financial Performance Dissected

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's revenue growth over a period of 3M has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 6.22%. This indicates a substantial 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 8.27%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Wendy's's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 18.3% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.94%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Wendy's's debt-to-equity ratio surpasses industry norms, standing at 15.78. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Analyst Ratings: Simplified

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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