Wendy’s (NASDAQ:WEN) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Wendy’s (NASDAQ:WEN) issued its quarterly earnings results on Thursday. The restaurant operator reported $0.23 earnings per share for the quarter, beating analysts’ consensus estimates of $0.21 by $0.02, Briefing.com reports. Wendy’s had a net margin of 9.44% and a return on equity of 62.68%. The business had revenue of $534.80 million during the quarter, compared to analyst estimates of $540.84 million. During the same quarter last year, the business posted $0.21 earnings per share. Wendy’s’s revenue for the quarter was up 1.1% compared to the same quarter last year. Wendy’s updated its FY24 guidance to $0.98-1.02 EPS.

Wendy’s Stock Performance

NASDAQ:WEN opened at $19.94 on Friday. The company has a debt-to-equity ratio of 11.21, a quick ratio of 2.18 and a current ratio of 2.04. Wendy’s has a fifty-two week low of $17.64 and a fifty-two week high of $23.90. The company has a market cap of $4.09 billion, a price-to-earnings ratio of 20.14, a PEG ratio of 2.01 and a beta of 0.78. The stock has a fifty day moving average price of $18.80 and a 200-day moving average price of $19.05.

Wendy’s Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, June 17th. Investors of record on Monday, June 3rd will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 5.02%. The ex-dividend date of this dividend is Monday, June 3rd. Wendy’s’s dividend payout ratio is currently 101.01%.

Insider Activity at Wendy’s

In other news, Director Kenneth W. Gilbert sold 4,500 shares of the company’s stock in a transaction that occurred on Friday, March 1st. The shares were sold at an average price of $18.07, for a total transaction of $81,315.00. Following the completion of the sale, the director now owns 31,304 shares of the company’s stock, valued at approximately $565,663.28. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 17.10% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Stephens reaffirmed an “equal weight” rating and set a $20.00 target price on shares of Wendy’s in a report on Thursday. UBS Group boosted their target price on Wendy’s from $20.00 to $21.00 and gave the stock a “neutral” rating in a research report on Friday. Truist Financial cut their price target on shares of Wendy’s from $23.00 to $22.00 and set a “buy” rating on the stock in a research report on Tuesday, February 20th. TD Cowen restated a “hold” rating and set a $19.00 price objective on shares of Wendy’s in a report on Friday. Finally, Citigroup increased their target price on shares of Wendy’s from $20.00 to $21.00 and gave the stock a “neutral” rating in a report on Friday. Fourteen investment analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to MarketBeat, Wendy’s presently has a consensus rating of “Hold” and an average price target of $22.60.

Wendy’s Company Profile

The Wendy's Company, together with its subsidiaries, operates as a quick-service restaurant company in the United States and internationally. It operates through Wendy's U.S., Wendy's International, and Global Real Estate & Development segments. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches.