Wendy’s (NASDAQ:WEN) Issues Quarterly Earnings Results

Wendy’s (NASDAQ:WEN) released its quarterly earnings results on Thursday. The restaurant operator reported $0.27 EPS for the quarter, missing the consensus estimate of $0.28 by ($0.01), Briefing.com reports. Wendy’s had a return on equity of 62.68% and a net margin of 9.44%. The firm had revenue of $570.73 million for the quarter, compared to analyst estimates of $577.15 million. During the same period last year, the firm earned $0.28 EPS. The company’s quarterly revenue was up 1.6% on a year-over-year basis. Wendy’s updated its FY24 guidance to $0.98-1.02 EPS and its FY 2024 guidance to 0.980-1.020 EPS.

Wendy’s Price Performance

Shares of NASDAQ WEN traded down $0.08 during trading on Friday, reaching $16.88. The company had a trading volume of 5,201,497 shares, compared to its average volume of 3,557,177. Wendy’s has a twelve month low of $15.61 and a twelve month high of $22.42. The stock has a market capitalization of $3.46 billion, a PE ratio of 17.04, a price-to-earnings-growth ratio of 1.88 and a beta of 0.76. The stock has a 50-day moving average price of $16.90 and a two-hundred day moving average price of $18.15. The company has a current ratio of 2.04, a quick ratio of 2.02 and a debt-to-equity ratio of 11.21.

Wendy’s Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 17th. Stockholders of record on Tuesday, September 3rd will be issued a $0.25 dividend. The ex-dividend date of this dividend is Tuesday, September 3rd. This represents a $1.00 dividend on an annualized basis and a dividend yield of 5.92%. Wendy’s’s dividend payout ratio (DPR) is 101.01%.

Analysts Set New Price Targets

Several research analysts have weighed in on the company. Loop Capital reiterated a “buy” rating and issued a $26.00 target price on shares of Wendy’s in a research note on Monday, July 15th. UBS Group lifted their target price on Wendy’s from $20.00 to $21.00 and gave the company a “neutral” rating in a research note on Friday, May 3rd. Truist Financial lowered their target price on Wendy’s from $22.00 to $21.00 and set a “buy” rating on the stock in a research note on Tuesday, July 9th. Deutsche Bank Aktiengesellschaft lowered their target price on Wendy’s from $20.00 to $18.00 and set a “hold” rating on the stock in a research note on Friday. Finally, JPMorgan Chase & Co. lifted their target price on Wendy’s from $19.00 to $20.00 and gave the company a “neutral” rating in a research note on Monday, June 3rd. One equities research analyst has rated the stock with a sell rating, fifteen have assigned a hold rating and four have issued a buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $20.28.

Insider Transactions at Wendy’s

In other news, CMO Juan Carlos Loredo sold 44,806 shares of the business’s stock in a transaction on Thursday, May 9th. The stock was sold at an average price of $19.50, for a total value of $873,717.00. Following the completion of the transaction, the chief marketing officer now directly owns 27,586 shares of the company’s stock, valued at $537,927. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 17.10% of the company’s stock.

About Wendy’s

The Wendy's Company, together with its subsidiaries, operates as a quick-service restaurant company in the United States and internationally. It operates through Wendy's U.S., Wendy's International, and Global Real Estate & Development segments. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches.