Wendy's (NASDAQ:WEN) underwent analysis by 18 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 1 | 15 | 0 | 1 |
| Last 30D | 1 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 0 | 1 |
| 2M Ago | 0 | 0 | 2 | 0 | 0 |
| 3M Ago | 0 | 1 | 11 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $20.17, a high estimate of $23.00, and a low estimate of $16.00. Marking an increase of 1.87%, the current average surpasses the previous average price target of $19.80.
Investigating Analyst Ratings: An Elaborate Study
In examining recent analyst actions, we gain insights into how financial experts perceive Wendy's. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Jim Salera | Stephens & Co. | Maintains | Equal-Weight | $20.00 | $20.00 |
| Jake Bartlett | Truist Securities | Lowers | Buy | $21.00 | $22.00 |
| Andrew Charles | TD Cowen | Maintains | Hold | $19.00 | $19.00 |
| Christine Cho | Goldman Sachs | Announces | Sell | $16.00 | - |
| John Ivankoe | JP Morgan | Raises | Neutral | $20.00 | $19.00 |
| David Palmer | Evercore ISI Group | Maintains | In-Line | $22.00 | - |
| Andrew Charles | TD Cowen | Maintains | Hold | $19.00 | $19.00 |
| Jim Salera | Stephens & Co. | Maintains | Equal-Weight | $20.00 | $20.00 |
| Dennis Geiger | UBS | Raises | Neutral | $21.00 | $20.00 |
| Jon Tower | Citigroup | Raises | Neutral | $21.00 | $20.00 |
| Andrew Strelzik | BMO Capital | Raises | Market Perform | $22.00 | $20.00 |
| Aisling Grueninger | Piper Sandler | Raises | Overweight | $23.00 | $21.00 |
| Nick Setyan | Wedbush | Raises | Neutral | $21.00 | $20.00 |
| Jim Salera | Stephens & Co. | Maintains | Equal-Weight | $20.00 | $20.00 |
| Nick Setyan | Wedbush | Raises | Neutral | $20.00 | $19.00 |
| Andrew Charles | TD Cowen | Maintains | Hold | $19.00 | $19.00 |
| Jim Salera | Stephens & Co. | Announces | Equal-Weight | $20.00 | - |
| Andrew Charles | TD Cowen | Maintains | Hold | $19.00 | $19.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Wendy's. This information provides a snapshot of how analysts perceive 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: Gaining insights, analysts provide estimates for the future value of Wendy's's stock. This comparison reveals trends in analysts' expectations over time.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Wendy's's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on Wendy's analyst ratings.
All You Need to Know About 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.
Financial Insights: Wendy's
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Wendy's's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 1.12%. This indicates a substantial 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 is impressive, surpassing industry averages. With a net margin of 7.85%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Wendy's's ROE stands out, surpassing industry averages. With an impressive ROE of 13.92%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Wendy's's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.81% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Wendy's's debt-to-equity ratio is notably higher than the industry average. With a ratio of 14.03, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
The Core of Analyst Ratings: What Every Investor Should Know
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.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.