Wendy's (NASDAQ:WEN) Stock

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.

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Wendy&#39;s Company shares fall despite posting a 6.2% sales increase in Q4 to $574.27 million, surpassing analyst expectations. The rise was fueled by higher franchise fees and restaurant sales. 

Wendy&#39;s Q4 Earnings Beat Expectations, Accelerated Growth Investments And Dividend Cut On The Menu

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Stifel analyst Chris O'Cull maintains Wendy's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WEN#NASDAQ">WEN</a>) with a Hold and lowers the price target from $17 to $16.

Stifel Maintains Hold on Wendy's, Lowers Price Target to $16

Truist Securities analyst Jake Bartlett maintains Wendy's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WEN#NASDAQ">WEN</a>) with a Buy and lowers the price target from $22 to $19.

Truist Securities Maintains Buy on Wendy's, Lowers Price Target to $19

Barclays analyst Jeffrey Bernstein maintains Wendy's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WEN#NASDAQ">WEN</a>) with a Equal-Weight and lowers the price target from $17 to $16.

Barclays Maintains Equal-Weight on Wendy's, Lowers Price Target to $16

Stephens &amp; Co. analyst Jim Salera reiterates Wendy's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WEN#NASDAQ">WEN</a>) with a Equal-Weight and maintains $15 price target.

Reiteration

Stephens & Co. Reiterates Equal-Weight on Wendy's, Maintains $15 Price Target

Wedbush analyst Nick Setyan maintains Wendy's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WEN#NASDAQ">WEN</a>) with a Neutral and raises the price target from $15.5 to $16.

Wedbush Maintains Neutral on Wendy's, Raises Price Target to $16

Wendy&#8217;s Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WEN#NASDAQ">WEN</a>) shares are trading <a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener">lower on Thursday</a> after the fourth-quarter FY24 results.
The company reported fourth-quarter sales growth of 6.2% year-on-year to $574.27 million, beating the analyst <a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/n43688571/the-wendys-company-reports-fourth-quarter-and-full-year-2024-results-provides-2025-outlook-and-upd" rel="noreferrer noopener">consensus estimate of $563.637 million</a>.
The increase in revenues was driven by increases in franchise fees, Company-operated restaurant sales, advertising funds revenue, and franchise royalty revenue.
Adjusted revenues increased 6.4% to $459.3 million. Systemwide sales in the U.S. rose 4.5%, and International Jumped 11.3%. Global same-restaurant sales growth was 4.3%. U.S. company-operated restaurant margin was 16.5% versus 13.5% a year ago.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/02/43690683/cruise-operator-royal-caribbean-increases-dividend-by-36-approves-1b-share-buyback" rel="noreferrer noopener">Cruise Operator Royal Caribbean Sets Sail With Dividend Hike And Buyback Plan</a>
Operating income for the quarter rose 10.9% Y/Y to $96 million. Adjusted EBITDA increased 8.6% Y/Y to $137.5 million. Adjusted EPS of $0.25 <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">beat the consensus estimate of $0.24.</a>
The company held $503.61 million in cash and equivalents as of December end. Operating cash flow for the year totaled $355.31 million, with a free cash flow of $278.95 million.
As of February&nbsp;6, approximately&nbsp;$228.1 million&nbsp;remains available under the company&#8217;s existing share repurchase authorization that expires in&nbsp;February 2027.
The company declared its regular quarterly cash dividend to $0.25 per share, payable on&nbsp;March 17, 2025, to shareholders of record as of&nbsp;March 3, 2025.
The company said its new target dividend payout ratio is&nbsp;50%&nbsp;to&nbsp;60%&nbsp;of adjusted earnings. As a result, beginning in the&nbsp;second quarter&nbsp;of 2025, the company expects to pay a quarterly dividend of&nbsp;$0.14&nbsp;per share.
Also, Wendy&#8217;s&nbsp;plans to repurchase up to&nbsp;$200 million&nbsp;of its shares in 2025, with a majority of the shares expected to be acquired over the next few months.
&#8220;I am excited about the opportunities ahead of us as we strengthen our system across the globe. Our new capital allocation policy will enable us to pursue these opportunities and maximize long-term shareholder value,&#8221; said President and CEO Kirk Tanner.
Outlook: Wendy&#8217;s expects FY25 adjusted EPS of <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">$0.98 &#8211; $1.02 versus the consensus of $1.03.</a>
WEN sees FY25 global systemwide sales growth of 2.0% &#8211; 3.0%. The company expects FY25 adjusted EBITDA of $550 million &#8211;&nbsp;$560 million.
Price Action: WEN shares are trading lower by 1.51% at $14.01 at the last check Thursday.
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Photo via Shutterstock.

Wendy's Q4 Earnings Beat Expectations, Accelerated Growth Investments And Dividend Cut On The Menu

Wendy's Declares Quarterly Cash Dividend Of $0.25 Per Share, Which Is Payable On March 17, To Shareholders Of Record As Of March 3

Wendy's Announced New Target Dividend Payout Ratio Of 50%-60% Of Adjusted Earnings And Plans To Repurchase Up To $200M Of Its Shares In 2025

Wendy's Company Sees FY25 Adjusted Earnings Per Share Of $0.98-$1.02 Vs. $1.04 Estimate, With Global systemwide Sales Growth Of 2%-3%

Wendy's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WEN#NASDAQ">WEN</a>) reported quarterly earnings of $0.25 per share which beat the analyst consensus estimate of $0.24 by 4.17 percent. This is a 19.05 percent increase over earnings of $0.21 per share from the same period last year. The company reported quarterly sales of $574.273 million which beat the analyst consensus estimate of $563.637 million by 1.89 percent. This is a 6.22 percent increase over sales of $540.651 million the same period last year.

Earnings

Earnings Beats

Wendy's Q4 2024 Adj. EPS $0.25 Beats $0.24 Estimate, Sales $574.273M Beat $563.637M Estimate

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Earnings Scheduled For February 13, 2025

Analysts' ratings for Wendy's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WEN#NASDAQ">WEN</a>) over the last quarter vary from bullish to bearish, as provided by 5 analysts.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">3</td>
<td align="right">1</td>
<td align="right">1</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">2</td>
<td align="right">1</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Insights from analysts' 12-month price targets are revealed, presenting an average target of $16.4, a high estimate of $19.00, and a low estimate of $14.00. Observing a downward trend, the current average is 14.58% lower than the prior average price target of $19.20. 
<img src="https://www.benzinga.com/files/images/story/2025/1738875623_0.png" alt="price target chart" />
<h2>Exploring Analyst Ratings: An In-Depth Overview</h2>
The perception of Wendy's by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Christine Cho</td>
<td>Goldman Sachs</td>
<td>Lowers</td>
<td>Sell</td>
<td>$15.00</td>
<td>$17.00</td>
</tr>
<tr>
<td>John Glass</td>
<td>Morgan Stanley</td>
<td>Lowers</td>
<td>Underweight</td>
<td>$14.00</td>
<td>$22.00</td>
</tr>
<tr>
<td>Chris O'Cull</td>
<td>Stifel</td>
<td>Lowers</td>
<td>Hold</td>
<td>$17.00</td>
<td>$18.00</td>
</tr>
<tr>
<td>Dennis Geiger</td>
<td>UBS</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$17.00</td>
<td>$20.00</td>
</tr>
<tr>
<td>Jim Salera</td>
<td>Stephens &amp; Co.</td>
<td>Maintains</td>
<td>Equal-Weight</td>
<td>$19.00</td>
<td>$19.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>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.</li>
<li>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.</li>
<li>Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.</li>
</ul>
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.
<a href="https://www.benzinga.com/quote/WEN/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Wendy's analyst ratings.</a>
<h2>All You Need to Know About Wendy's</h2>
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.
<h3>Key Indicators: Wendy's's Financial Health</h3>
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Growth: Over the 3 months period, Wendy's showcased positive performance, achieving a revenue growth rate of 2.94% as of 30 September, 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 surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.86% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Wendy's's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 18.82% 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 0.99%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: With a high debt-to-equity ratio of 15.77, Wendy's faces challenges in effectively managing its debt levels, indicating potential financial strain.
<h2>The Core of Analyst Ratings: What Every Investor Should Know</h2>
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
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 <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.
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Expert Outlook: Wendy's Through The Eyes Of 5 Analysts

Goldman Sachs analyst Christine Cho maintains Wendy's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WEN#NASDAQ">WEN</a>) with a Sell and lowers the price target from $17 to $15.

Goldman Sachs Maintains Sell on Wendy's, Lowers Price Target to $15

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a<a href="https://www.benzinga.com/yield-investments"> high dividend payout</a>.
Benzinga readers can review the latest analyst takes on their favorite stocks by visiting <a href="https://www.benzinga.com/analyst-stock-ratings">Analyst Stock Ratings</a> page. Traders can sort through Benzinga's extensive database of analyst ratings, including <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie">by analyst accuracy</a>.
Below are the ratings of the most accurate analysts for three high-yielding stocks in the consumer discretionary sector.
<h3 class="wp-block-heading">Bloomin&#8217; Brands, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BLMN#NASDAQ">BLMN</a>)</h3>
<ul>
<li>Dividend Yield: 7.71%</li>
<li>B of A Securities analyst Justin Post downgraded the stock from Neutral to Underperform and cut the price target from $18 to $13 on Jan. 27, 2025. This analyst has an accuracy rate of 85%.</li>
<li>UBS analyst Dennis Geiger maintained a Neutral rating and slashed the price target from $16 to $13 on Jan. 7, 2025. This analyst has an accuracy rate of 67%.</li>
<li>Recent News: On Jan. 8, Bloomin&#8217; Brands announced the promotion of Pat Hafner to Executive Vice President, President of Outback Steakhouse.</li>
<li>Benzinga Pro's real-time newsfeed alerted to latest <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012925&amp;t=be2bearmibe3na1">BLMN news.</a> </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012925&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="920" height="837" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/29073247/image-229.png" alt="" class="wp-image-755604" style="width:656px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/29073247/image-229.png 920w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/29073247/image-229-300x273.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/29073247/image-229-768x699.png 768w" sizes="(max-width: 920px) 100vw, 920px" /></a></figure>
<h3 class="wp-block-heading">The Wendy&#8217;s Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WEN#NASDAQ">WEN</a>)</h3>
<ul>
<li>Dividend Yield: 6.84%</li>
<li>Morgan Stanley analyst John Glass downgraded the stock from Equal-Weight to Underweight and cut the price target from $22 to $14 on Jan. 21, 2025. This analyst has an accuracy rate of 61%.</li>
<li>Stifel analyst Chris O'Cull maintained a Hold rating and cut the price target from $18 to $37 on Jan. 10, 2025. This analyst has an accuracy rate of 79%.</li>
<li>Recent News: The Wendy&#8217;s Company will report fourth quarter and full year 2024 results on Feb. 13, 2025.</li>
<li>Benzinga Pro's real-time newsfeed alerted to latest <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012925&amp;t=be2bearmibe3na1">WEN news</a>.</li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012925&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="912" height="835" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/29073403/image-230.png" alt="" class="wp-image-755606" style="width:603px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/29073403/image-230.png 912w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/29073403/image-230-300x275.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/29073403/image-230-768x703.png 768w" sizes="(max-width: 912px) 100vw, 912px" /></a></figure>
<h3 class="wp-block-heading">Ford Motor Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>)</h3>
<ul>
<li>Dividend Yield: 5.95%</li>
<li>Jefferies analyst Philippe Houchois downgraded the stock from Hold to Underperform and cut the price target from $12 to $9 on Dec. 16, 2024. This analyst has an accuracy rate of 74%.</li>
<li>Wolfe Research analyst Emmanuel Rosner downgraded the stock from Peer Perform to Underperform on Dec. 5, 2024. This analyst has an accuracy rate of 74%.</li>
<li>Recent News: Ford said it expects to record pre-tax remeasurement gain in Q4 results of approximately $0.7 billion related to pension and OPEB plans.</li>
<li>Benzinga Pro&#8217;s real-time newsfeed alerted to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012925&amp;t=be2bearmibe3na1">latest F news</a>.</li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012925&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="921" height="842" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/29073435/image-231.png" alt="" class="wp-image-755608" style="width:569px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/29073435/image-231.png 921w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/29073435/image-231-300x274.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/29073435/image-231-768x702.png 768w" sizes="(max-width: 921px) 100vw, 921px" /></a></figure>
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Wall Street's Most Accurate Analysts Weigh In On 3 Consumer Stocks With Over 5% Dividend Yields

On CNBC's &#8220;<a href="https://www.benzinga.com/topic/mad-money-lightning-round">Mad Money Lightning Round</a>,&#8221; Jim Cramer said he is worried about The Wendy&#8217;s Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WEN#NASDAQ">WEN</a>).
Cramer says it should not have a 7% yield, adding, &#8220;That, to me, suggests something may be wrong here.
Morgan Stanley analyst John Glass supported his view on Jan. 21, downgrading Wendy&#8217;s from Equal-Weight to Underweight and lowering the price target from $22 to $14.
<h3 class="wp-block-heading">Nu Is A &#8216;Really Hard&#8217; Company</h3>
Nu Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NU#NYSE">NU</a>) is a &#8220;really hard&#8221; company. Cramer added that he prefers SoFi Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOFI#NASDAQ">SOFI</a>) over the fintech firm.
Supporting his view, Citigroup analyst Ashwin Shirvaikar, on Dec. 2, downgraded the rating from Neutral to Sell on the stock and lowered its price <a href="https://www.benzinga.com/quote/NU/analyst-ratings">target from $14.6 to $11</a>.
<h3 class="wp-block-heading">Other Stocks In Focus</h3>
TETRA Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTI#NYSE">TTI</a>) is a &#8220;very good company, and it did come up from the ashes,&#8221; Cramer said. &#8220;As a matter of fact, it's come up so much, it's up 28% for the year, so I cannot sanction buying it.&#8221;
The company's stock also jumped more than 33% over the past month.
When asked about Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>), he said, &#8220;I can't recommend anything on a straight line. But if it pulls back a couple bucks, though, it's good, because this should be one of the great pharma stories because it's got the best growth in device and pharmaceuticals.&#8221;
Abbott Laboratories, meanwhile, on Jan. 22, reported fourth-quarter sales of $10.97 billion, up 7.2% year over year, missing the consensus of $11.01 billion.
&#8220;This one has been around forever, and it just caught fire,&#8221; Cramer said when asked about Casella Waste Systems, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CWST#NASDAQ">CWST</a>). The &#8220;Mad Money&#8221; host added that although it's good he will go back to Waste Management, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WM#NYSE">WM</a>).
Adding support to his choice, Jefferies analyst Stephanie Moore, on Jan. 23, downgraded Casella Waste from Buy to Hold and lowered the price target from $115 to $113.
Price Action:
<ul>
<li>TETRA Technologies shares fell 1.7% to settle at $4.60 on Friday.</li>
<li>Abbott shares gained 1.5% to close at $125.03 during the session.</li>
<li>Wendy's shares gained 0.6% to settle at $14.30 on Friday.</li>
<li>Nu Holdings shares rose 1.2% to close at $12.34.</li>
<li>Casella Waste shares slipped 1% to settle at $105.03 on Friday.</li>
</ul>
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Image: Shutterstock

Jim Cramer Is Worried About This Consumer Cyclical Stock: 7% Yield? 'Something May Be Wrong Here'

Wendy's's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WEN#NYSE">WEN</a>) short percent of float has risen 20.91% since its last report. The company recently reported that it has 12.19 million shares sold short, which is 8.27% of all regular shares that are available for trading. Based on its trading volume, it would take traders 3.84 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Wendy's Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1737576926_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Wendy's has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Wendy's's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Wendy's's peer group average for short interest as a percentage of float is 9.20%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Looking Into Wendy's's Recent Short Interest

Morgan Stanley analyst John Glass downgrades Wendy's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WEN#NASDAQ">WEN</a>) from Equal-Weight to Underweight and lowers the price target from $22 to $14.

Downgrades

Morgan Stanley Downgrades Wendy's to Underweight, Lowers Price Target to $14

The most oversold stocks in the consumer discretionary sector presents an opportunity to buy into undervalued companies.
The RSI is a momentum indicator, which compares a stock&#8217;s strength on days when prices go up to its strength on days when prices go down. When compared to a stock&#8217;s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the<a href="https://www.benzinga.com/topic/rsi"> RSI is below 30</a>, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>.
Here's the latest list of major oversold players in this sector, having an RSI near or below 30.
<h3 class="wp-block-heading">Krispy Kreme Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DNUT#NASDAQ">DNUT</a>)</h3>
<ul>
<li>On Jan. 9, Krispy Kreme announced changes to its global leadership team, naming Nicola Steele as incoming COO. &#8220;These leaders all have extensive company experience, commitment to operational excellence and passion for our iconic fresh doughnuts and beloved brand,&#8221; said Josh Charlesworth, Krispy Kreme CEO. &#8220;As we grow, these leadership changes will result in both a bigger and better Krispy Kreme.&#8221; The company has a <a href="https://www.benzinga.com/quote/DNUT">52-week low of $8.78</a>.</li>
<li>RSI Value: 27.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li>
<li>DNUT Price Action: Shares of Krispy Kreme fell 0.6% to close at $8.94 on Wednesday.</li>
<li>Benzinga Pro's real-time newsfeed alerted to latest <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent011625&amp;t=be2bearmibe3na1">DNUT news</a>. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent011625&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="907" height="807" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/16054417/image-103.png" alt="" class="wp-image-736405" style="width:561px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/16054417/image-103.png 907w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/16054417/image-103-300x267.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/16054417/image-103-768x683.png 768w" sizes="(max-width: 907px) 100vw, 907px" /></a></figure>
<h3 class="wp-block-heading">Wendy&#8217;s Co (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WEN#NASDAQ">WEN</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</h3>
<ul>
<li>The Wendy&#8217;s Company will report fourth quarter and full year 2024 results on Feb. 13, 2025. The company's stock fell around 10% over the past month and <a href="https://www.benzinga.com/quote/WEN">has a 52-week low</a> of $14.74.</li>
<li>RSI Value: 23.9</li>
<li>WEN Price Action: Shares of Wendy&#8217;s closed at $15.13 on Wednesday.</li>
<li>Benzinga Pro&#8217;s charting tool helped identify the trend <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent011625&amp;t=be2bearmibe3na1">in WEN stock</a>. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent011625&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="918" height="842" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/16054512/image-104.png" alt="" class="wp-image-736406" style="width:595px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/16054512/image-104.png 918w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/16054512/image-104-300x275.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/16054512/image-104-768x704.png 768w" sizes="(max-width: 918px) 100vw, 918px" /></a></figure>
<h3 class="wp-block-heading">Las Vegas Sands Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LVS#NYSE">LVS</a>)</h3>
<ul>
<li>On Jan. 14, Morgan Stanley downgraded the stock from Overweight to Equal-Weight and cut its price target from $53 to $51. The company's stock fell around 16% over the past month and has a 52-week <a href="https://www.benzinga.com/quote/LVS">low of $36.62</a>.</li>
<li>RSI Value: 23.5</li>
<li>LVS Price Action: Shares of Las Vegas Sands fell 1.8% to close at $44.20 on Wednesday. </li>
<li>Benzinga Pro&#8217;s signals feature notified of a potential <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent011625&amp;t=be2bearmibe3na1">breakout in LVS shares</a>. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent011625&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="890" height="848" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/16054605/image-105.png" alt="" class="wp-image-736409" style="width:541px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/16054605/image-105.png 890w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/16054605/image-105-300x286.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/16054605/image-105-768x732.png 768w" sizes="(max-width: 890px) 100vw, 890px" /></a></figure>
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DNUT

Top 3 Consumer Stocks You'll Regret Missing This Month

Stifel analyst Chris O'Cull maintains Wendy's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WEN#NASDAQ">WEN</a>) with a Hold and lowers the price target from $18 to $17.

Stifel Maintains Hold on Wendy's, Lowers Price Target to $17

Press Releases

Coach Bill Self Teams Up with Local Wendy's Restaurants to Support a Spooktacular Cause

THE WENDY'S COMPANY REPORTS THIRD QUARTER 2024 RESULTS

Celebrating 55 Years of Frosty: Wendy's Drops New Salted Caramel Frosty Nationwide

As Temperatures Drop Wendy's Spices Up Holiday Meal Planning with $3.99 Spicy Chicken Sandwich In-App Offer

THE WENDY'S COMPANY NAMES KEN COOK CHIEF FINANCIAL OFFICER

Sweet Season's Greetings: Wendy's Kicks Off the Countdown to Frosty Key Tags

Wendy's Offers 12 Days of Sweet & Spicy Holiday BOGO Deals Exclusively In-App

The Wendy's Company to Report Fourth Quarter and Full Year 2024 Results on February 13, 2025 and Host an Investor Day on March 6, 2025

THE WENDY'S COMPANY REPORTS FOURTH QUARTER AND FULL-YEAR 2024 RESULTS, PROVIDES 2025 OUTLOOK, AND UPDATES ITS CAPITAL ALLOCATION POLICY

Wendy's New Thin Mints Frosty is the Perfect Pairing for Girl Scout Cookie Season Beginning Feb. 21

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