Wendys Co (NASDAQ:WEN) – Equities researchers at SunTrust Banks reduced their Q4 2019 earnings per share (EPS) estimates for shares of Wendys in a research note issued on Wednesday, May 8th. SunTrust Banks analyst J. Bartlett now forecasts that the restaurant operator will post earnings per share of $0.15 for the quarter, down from their previous estimate of $0.16. SunTrust Banks also issued estimates for Wendys’ Q1 2020 earnings at $0.16 EPS, Q2 2020 earnings at $0.22 EPS, Q3 2020 earnings at $0.20 EPS and Q4 2020 earnings at $0.21 EPS.
A number of other analysts have also recently weighed in on WEN. Wedbush reaffirmed a “hold” rating and set a $17.50 price target on shares of Wendys in a research report on Monday, February 11th. ValuEngine cut shares of Wendys from a “buy” rating to a “hold” rating in a research report on Thursday, March 7th. Mizuho cut shares of Wendys from a “buy” rating to a “neutral” rating and set a $18.00 price objective for the company. in a research report on Wednesday, March 20th. BidaskClub raised shares of Wendys from a “hold” rating to a “buy” rating in a research report on Monday, April 1st. Finally, Cowen started coverage on shares of Wendys in a research report on Wednesday, April 10th. They issued an “outperform” rating and a $21.00 price objective for the company. Nine research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company’s stock. The company presently has an average rating of “Buy” and an average price target of $20.15.
Wendys (NASDAQ:WEN) last announced its quarterly earnings results on Wednesday, May 8th. The restaurant operator reported $0.14 earnings per share for the quarter, topping analysts’ consensus estimates of $0.12 by $0.02. Wendys had a net margin of 28.94% and a return on equity of 24.68%. The firm had revenue of $408.60 million during the quarter, compared to analysts’ expectations of $398.58 million. During the same period in the prior year, the company earned $0.11 EPS. The firm’s revenue was up 7.4% on a year-over-year basis.
The business also recently declared a quarterly dividend, which will be paid on Monday, June 17th. Stockholders of record on Monday, June 3rd will be given a dividend of $0.10 per share. The ex-dividend date of this dividend is Friday, May 31st. This represents a $0.40 annualized dividend and a dividend yield of 2.13%. Wendys’s payout ratio is 67.80%.
In related news, insider Abigail E. Pringle sold 8,897 shares of the stock in a transaction dated Wednesday, March 6th. The shares were sold at an average price of $17.35, for a total transaction of $154,362.95. Following the sale, the insider now owns 100,917 shares in the company, valued at $1,750,909.95. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, major shareholder Trian Fund Management, L.P. sold 3,000,000 shares of the stock in a transaction dated Wednesday, March 6th. The stock was sold at an average price of $17.11, for a total transaction of $51,330,000.00. The disclosure for this sale can be found here. Company insiders own 20.90% of the company’s stock.
Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. increased its stake in shares of Wendys by 3.1% in the fourth quarter. BlackRock Inc. now owns 16,707,749 shares of the restaurant operator’s stock valued at $260,806,000 after purchasing an additional 496,357 shares during the period. Vanguard Group Inc. increased its stake in shares of Wendys by 1.3% in the third quarter. Vanguard Group Inc. now owns 16,598,478 shares of the restaurant operator’s stock valued at $284,498,000 after purchasing an additional 220,643 shares during the period. Janus Henderson Group PLC increased its stake in shares of Wendys by 1.8% in the first quarter. Janus Henderson Group PLC now owns 5,419,827 shares of the restaurant operator’s stock valued at $96,961,000 after purchasing an additional 98,309 shares during the period. Norges Bank acquired a new stake in shares of Wendys in the fourth quarter valued at approximately $56,554,000. Finally, JPMorgan Chase & Co. increased its stake in shares of Wendys by 57.1% in the first quarter. JPMorgan Chase & Co. now owns 2,956,664 shares of the restaurant operator’s stock valued at $52,895,000 after purchasing an additional 1,074,389 shares during the period. Hedge funds and other institutional investors own 78.28% of the company’s stock.
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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