Zacks Investment Research lowered shares of Wendy’s Company (The) (NASDAQ:WEN) from a hold rating to a sell rating in a research note issued to investors on Thursday.
According to Zacks, “Wendy’s shares have underperformed the industry year to date. Third-quarter 2017 adjusted earnings of 9 cents per share missed the Zacks Consensus Estimate by 25%. Moreover, earnings declined 18.2% year over year owing to lower revenues. Revenues of $308 million lagged the consensus mark by a slight margin and declined 15.4% year over year. Revenues have been declining over the past few quarters due toreduced number of company-operated restaurants. Though Wendy’s transition to a franchise-based business model is expected to lower the company’s G&A expenses, thereby boosting earnings 2017 onwards, it may continue to weigh on its revenues. Initiatives like Image Activation program along with focus on menu innovation, delivery, technology-related offerings and global expansion bode well. Yet, higher labor and commodity costs as well as a soft industry backdrop raise concerns.”
WEN has been the topic of a number of other research reports. Royal Bank of Canada restated a hold rating and set a $16.00 price objective on shares of Wendy’s Company (The) in a research note on Friday, August 11th. Bank of America Corporation restated a neutral rating and set a $17.00 price objective on shares of Wendy’s Company (The) in a research note on Monday, August 14th. Stifel Nicolaus initiated coverage on Wendy’s Company (The) in a research note on Monday, October 2nd. They set a buy rating and a $18.00 price objective on the stock. BidaskClub cut Wendy’s Company (The) from a hold rating to a sell rating in a research note on Thursday. Finally, Longbow Research upgraded Wendy’s Company (The) from a neutral rating to a buy rating and boosted their price objective for the stock from $15.23 to $18.00 in a research note on Friday, September 15th. Four equities research analysts have rated the stock with a sell rating, eleven have given a hold rating and eight have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and an average price target of $15.97.
Shares of Wendy’s Company (NASDAQ:WEN) traded down $0.19 during trading on Thursday, reaching $14.50. The company had a trading volume of 4,060,500 shares, compared to its average volume of 2,828,500. Wendy’s Company has a 52-week low of $11.20 and a 52-week high of $16.66. The firm has a market capitalization of $3,557.87, a PE ratio of 35.83, a P/E/G ratio of 2.50 and a beta of 0.94. The company has a quick ratio of 1.91, a current ratio of 1.80 and a debt-to-equity ratio of 5.83.
Wendy’s Company (The) (NASDAQ:WEN) last issued its earnings results on Wednesday, November 8th. The restaurant operator reported $0.09 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.12 by ($0.03). Wendy’s Company (The) had a net margin of 5.20% and a return on equity of 20.35%. The firm had revenue of $308.00 million during the quarter, compared to analyst estimates of $308.59 million. During the same quarter in the previous year, the business posted $0.11 EPS. Wendy’s Company (The)’s revenue was down 15.4% compared to the same quarter last year. analysts predict that Wendy’s Company will post 0.44 EPS for the current fiscal year.
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The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 15th. Investors of record on Friday, December 1st will be issued a $0.07 dividend. This represents a $0.28 annualized dividend and a yield of 1.93%. The ex-dividend date is Thursday, November 30th. Wendy’s Company (The)’s dividend payout ratio is currently 112.00%.
In related news, insider E.J. Wunsch sold 3,548 shares of the business’s stock in a transaction dated Wednesday, October 4th. The stock was sold at an average price of $15.43, for a total value of $54,745.64. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 26.50% of the stock is owned by insiders.
Institutional investors have recently made changes to their positions in the stock. WFG Advisors LP increased its holdings in Wendy’s Company (The) by 50.2% in the second quarter. WFG Advisors LP now owns 7,017 shares of the restaurant operator’s stock valued at $109,000 after buying an additional 2,344 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its holdings in Wendy’s Company (The) by 10.2% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 7,495 shares of the restaurant operator’s stock valued at $116,000 after buying an additional 692 shares during the last quarter. Riverhead Capital Management LLC increased its holdings in Wendy’s Company (The) by 75.7% in the second quarter. Riverhead Capital Management LLC now owns 9,312 shares of the restaurant operator’s stock valued at $144,000 after buying an additional 4,012 shares during the last quarter. Sigma Planning Corp increased its holdings in Wendy’s Company (The) by 0.5% in the second quarter. Sigma Planning Corp now owns 11,222 shares of the restaurant operator’s stock valued at $174,000 after buying an additional 51 shares during the last quarter. Finally, Sheaff Brock Investment Advisors LLC bought a new stake in Wendy’s Company (The) in the second quarter valued at about $219,000. 76.55% of the stock is owned by hedge funds and other institutional investors.
Wendy’s Company (The) Company Profile
The Wendy’s Company is the parent company of subsidiary holding company Wendy’s Restaurants, LLC (Wendy’s Restaurants). Wendy’s Restaurants is the parent company of Wendy’s International, LLC (Wendy’s), which is the owner and franchisor of the Wendy’s restaurant system in the United States. Wendy’s is a restaurant company specializing in the hamburger sandwich segment.
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