Wendy’s (NASDAQ:WEN) Shares Gap Up on Strong Earnings

The Wendy’s Company (NASDAQ:WEN)’s share price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $8.83, but opened at $9.80. Wendy’s shares last traded at $9.08, with a volume of 2,657,277 shares changing hands.

The restaurant operator reported $0.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.20 by $0.04. Wendy’s had a return on equity of 103.07% and a net margin of 8.63%.The company’s quarterly revenue was down 3.0% compared to the same quarter last year. During the same period last year, the business posted $0.25 EPS. Wendy’s has set its FY 2025 guidance at 0.820-0.890 EPS.

Analyst Ratings Changes

Several research firms recently commented on WEN. Barclays cut their price target on shares of Wendy’s from $11.00 to $9.00 and set an “equal weight” rating on the stock in a report on Wednesday, October 22nd. Stephens restated an “equal weight” rating on shares of Wendy’s in a report on Monday, August 11th. Cowen reiterated a “hold” rating on shares of Wendy’s in a report on Friday, August 8th. BTIG Research restated a “neutral” rating on shares of Wendy’s in a research note on Monday, September 15th. Finally, Northcoast Research cut Wendy’s from a “neutral” rating to a “sell” rating and set a $7.00 price target for the company. in a report on Thursday, September 25th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, fourteen have issued a Hold rating and five have given a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $11.40.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Cherokee Insurance Co bought a new stake in shares of Wendy’s in the 3rd quarter worth about $92,000. Public Sector Pension Investment Board bought a new position in Wendy’s during the 3rd quarter worth approximately $5,651,000. Advisors Asset Management Inc. lifted its holdings in Wendy’s by 17.0% during the 3rd quarter. Advisors Asset Management Inc. now owns 512,405 shares of the restaurant operator’s stock worth $4,694,000 after buying an additional 74,434 shares during the last quarter. Alps Advisors Inc. grew its position in shares of Wendy’s by 71.7% in the 3rd quarter. Alps Advisors Inc. now owns 634,304 shares of the restaurant operator’s stock worth $5,810,000 after acquiring an additional 264,905 shares in the last quarter. Finally, Envestnet Asset Management Inc. bought a new stake in shares of Wendy’s in the 3rd quarter valued at approximately $498,000. 85.96% of the stock is owned by institutional investors and hedge funds.

Wendy’s Stock Up 4.7%

The company has a debt-to-equity ratio of 28.74, a quick ratio of 1.43 and a current ratio of 1.45. The firm has a market capitalization of $1.76 billion, a P/E ratio of 9.58, a P/E/G ratio of 1.63 and a beta of 0.38. The stock has a fifty day moving average price of $9.30 and a two-hundred day moving average price of $10.61.

About Wendy’s

The Wendy’s Co engages in operating, developing, and franchising a system of quick-service restaurants. It operates through the following segments: Wendy’s U.S., Wendy’s International, and Global Real Estate and Development. The Wendy’s U.S. segment includes the operation and franchising of Wendy’s restaurants in the U.S.