Analyst Scoreboard: 12 Ratings For Wendy's

In the preceding three months, 12 analysts have released ratings for Wendy's WEN, presenting a wide array of perspectives from bullish to bearish.

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.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $19.92, a high estimate of $26.00, and a low estimate of $16.00. Observing a downward trend, the current average is 3.07% lower than the prior average price target of $20.55.

Exploring Analyst Ratings: An In-Depth Overview

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: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Wendy's. This insight gives a snapshot of analysts' perspectives on 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 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 $12.3 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.

Wendy's: Delving into Financials

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Wendy's displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 1.12%. 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: Wendy's's net margin excels beyond industry benchmarks, reaching 7.85%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Wendy's's ROE excels beyond industry benchmarks, reaching 13.92%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Wendy's's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.81%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a high debt-to-equity ratio of 14.03, Wendy's faces challenges in effectively managing its debt levels, indicating potential financial strain.

Analyst Ratings: What Are They?

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.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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