Wendys Co (NASDAQ:WEN) – SunTrust Banks cut their FY2019 EPS estimates for shares of Wendys in a research report issued on Tuesday, September 10th. SunTrust Banks analyst J. Bartlett now forecasts that the restaurant operator will post earnings per share of $0.57 for the year, down from their previous estimate of $0.63. SunTrust Banks currently has a “Buy” rating and a $24.00 target price on the stock.
Wendys (NASDAQ:WEN) last released its earnings results on Wednesday, August 7th. The restaurant operator reported $0.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.17 by $0.01. Wendys had a return on equity of 23.16% and a net margin of 28.88%. The business had revenue of $435.30 million for the quarter, compared to analyst estimates of $439.64 million. During the same quarter in the prior year, the company posted $0.14 earnings per share. Wendys’s revenue was up 5.9% on a year-over-year basis.
Several other research firms have also issued reports on WEN. BMO Capital Markets set a $21.00 target price on Wendys and gave the stock a “buy” rating in a report on Tuesday. Stephens set a $22.00 target price on Wendys and gave the stock a “buy” rating in a report on Tuesday. BTIG Research lowered Wendys from a “buy” rating to a “neutral” rating in a research note on Tuesday. Zacks Investment Research lowered Wendys from a “buy” rating to a “hold” rating and set a $23.00 price objective on the stock. in a research note on Friday, August 23rd. Finally, Evercore ISI set a $20.00 price objective on Wendys and gave the company a “hold” rating in a research note on Wednesday, August 7th. One research analyst has rated the stock with a sell rating, thirteen have given a hold rating and twelve have assigned a buy rating to the company. Wendys presently has an average rating of “Hold” and an average price target of $20.83.
WEN opened at $19.65 on Friday. Wendys has a 52-week low of $14.96 and a 52-week high of $22.84. The firm has a market capitalization of $4.52 billion, a PE ratio of 33.31, a PEG ratio of 2.43 and a beta of 0.66. The company has a debt-to-equity ratio of 5.67, a quick ratio of 1.96 and a current ratio of 1.97. The business’s 50-day simple moving average is $20.25 and its 200 day simple moving average is $18.92.
The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 17th. Stockholders of record on Tuesday, September 3rd will be given a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 2.04%. The ex-dividend date of this dividend is Friday, August 30th. Wendys’s payout ratio is 67.80%.
In other news, major shareholder Trian Fund Management, L.P. sold 475,000 shares of the company’s stock in a transaction that occurred on Thursday, August 15th. The stock was sold at an average price of $19.90, for a total value of $9,452,500.00. Following the transaction, the insider now owns 5,444,270 shares of the company’s stock, valued at $108,340,973. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Matthew H. Peltz sold 2,000,000 shares of the company’s stock in a transaction that occurred on Friday, August 16th. The shares were sold at an average price of $19.97, for a total value of $39,940,000.00. Following the completion of the transaction, the director now directly owns 5,444,270 shares in the company, valued at approximately $108,722,071.90. The disclosure for this sale can be found here. 20.90% of the stock is currently owned by corporate insiders.
A number of large investors have recently modified their holdings of WEN. Toronto Dominion Bank bought a new position in shares of Wendys in the 2nd quarter worth about $111,000. Atria Investments LLC bought a new position in shares of Wendys in the 2nd quarter worth about $506,000. BlackRock Inc. raised its position in shares of Wendys by 1.3% in the 2nd quarter. BlackRock Inc. now owns 16,840,359 shares of the restaurant operator’s stock worth $329,735,000 after acquiring an additional 211,285 shares in the last quarter. Amundi Pioneer Asset Management Inc. raised its position in shares of Wendys by 70.7% in the 2nd quarter. Amundi Pioneer Asset Management Inc. now owns 968,959 shares of the restaurant operator’s stock worth $18,973,000 after acquiring an additional 401,238 shares in the last quarter. Finally, Cambridge Investment Research Advisors Inc. raised its position in shares of Wendys by 16.1% in the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 13,600 shares of the restaurant operator’s stock worth $266,000 after acquiring an additional 1,881 shares in the last quarter. 77.94% of the stock is currently owned by institutional investors and hedge funds.
Wendys Company Profile
The Wendy's Company, together its subsidiaries, operates as a quick-service restaurant company. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches. As of December 30, 2018, its restaurant system included 6,711 franchise restaurants, which comprise 353 owned and operated restaurants worldwide.
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