18 Analysts Assess Wendy's: What You Need To Know

In the latest quarter, 18 analysts provided ratings for Wendy's WEN, showcasing a mix of bullish and bearish perspectives.

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.

In the assessment of 12-month price targets, analysts unveil insights for Wendy's, presenting an average target of $19.49, a high estimate of $29.00, and a low estimate of $17.00. This current average represents a 3.47% decrease from the previous average price target of $20.19.

Decoding Analyst Ratings: A Detailed Look

The standing of Wendy's among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines 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: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Wendy's compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Wendy's's stock. This comparison reveals trends in analysts' expectations over time.

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.

Delving into Wendy's's Background

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: A Financial Overview

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.

Positive Revenue Trend: Examining Wendy's's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 1.63% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, 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 9.57%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Wendy's's ROE stands out, surpassing industry averages. With an impressive ROE of 19.26%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Wendy's's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.06%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Wendy's's debt-to-equity ratio surpasses industry norms, standing at 14.99. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Significance of Analyst Ratings Explained

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

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.

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