Equities research analysts expect Wendy’s (NASDAQ:WEN) to post earnings of $0.10 per share for the current quarter, according to Zacks. Six analysts have made estimates for Wendy’s’ earnings, with estimates ranging from $0.09 to $0.11. Wendy’s posted earnings of $0.09 per share in the same quarter last year, which would indicate a positive year over year growth rate of 11.1%. The business is expected to report its next earnings report after the market closes on Tuesday, May 8th.
According to Zacks, analysts expect that Wendy’s will report full year earnings of $0.55 per share for the current fiscal year, with EPS estimates ranging from $0.54 to $0.56. For the next year, analysts expect that the firm will report earnings of $0.68 per share, with EPS estimates ranging from $0.62 to $0.72. Zacks Investment Research’s EPS calculations are an average based on a survey of sell-side research firms that cover Wendy’s.
Wendy’s (NASDAQ:WEN) last issued its quarterly earnings data on Wednesday, February 21st. The restaurant operator reported $0.11 EPS for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.01). Wendy’s had a return on equity of 21.24% and a net margin of 15.86%. The firm had revenue of $309.25 million during the quarter. During the same quarter in the prior year, the company earned $0.08 EPS. Wendy’s’s quarterly revenue was down .2% compared to the same quarter last year.
WEN has been the topic of a number of recent analyst reports. Stifel Nicolaus upped their target price on shares of Wendy’s from $18.00 to $20.00 and gave the company a “buy” rating in a research note on Wednesday. Mizuho initiated coverage on shares of Wendy’s in a research note on Thursday, March 15th. They issued a “buy” rating and a $19.00 target price on the stock. BidaskClub upgraded shares of Wendy’s from a “strong sell” rating to a “sell” rating in a research note on Friday, March 9th. Oppenheimer initiated coverage on shares of Wendy’s in a research note on Monday, March 19th. They issued a “market perform” rating on the stock. Finally, Citigroup upped their target price on shares of Wendy’s from $17.00 to $19.00 and gave the company a “buy” rating in a research note on Monday, March 5th. Two investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and eleven have assigned a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus target price of $17.57.
In related news, major shareholder Trian Partners Parallel Fund I sold 5,000,000 shares of the business’s stock in a transaction dated Monday, February 26th. The shares were sold at an average price of $16.50, for a total transaction of $82,500,000.00. Following the completion of the sale, the insider now owns 5,409,971 shares of the company’s stock, valued at approximately $89,264,521.50. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Gunther Plosch acquired 5,000 shares of the stock in a transaction that occurred on Wednesday, March 7th. The shares were acquired at an average cost of $16.62 per share, with a total value of $83,100.00. Following the transaction, the chief financial officer now owns 25,000 shares in the company, valued at $415,500. The disclosure for this purchase can be found here. 26.50% of the stock is owned by corporate insiders.
Several large investors have recently made changes to their positions in WEN. Zurcher Kantonalbank Zurich Cantonalbank grew its position in shares of Wendy’s by 50.1% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 11,248 shares of the restaurant operator’s stock valued at $185,000 after buying an additional 3,753 shares during the last quarter. Boston Advisors LLC bought a new stake in shares of Wendy’s during the 4th quarter valued at about $199,000. First Commonwealth Financial Corp PA bought a new stake in shares of Wendy’s during the 4th quarter valued at about $205,000. State of Alaska Department of Revenue bought a new position in Wendy’s in the 4th quarter worth about $220,000. Finally, Oppenheimer & Co. Inc. bought a new position in Wendy’s in the 4th quarter worth about $234,000. 80.55% of the stock is owned by institutional investors and hedge funds.
WEN stock traded down $0.24 during trading on Friday, reaching $17.15. The stock had a trading volume of 2,355,684 shares, compared to its average volume of 3,950,589. Wendy’s has a 1-year low of $13.57 and a 1-year high of $17.75. The company has a debt-to-equity ratio of 4.75, a current ratio of 1.78 and a quick ratio of 1.77. The firm has a market capitalization of $4,220.87, a P/E ratio of 39.88, a P/E/G ratio of 1.65 and a beta of 0.75.
Wendy’s announced that its Board of Directors has authorized a share repurchase plan on Thursday, February 15th that allows the company to buyback $175.00 million in shares. This buyback authorization allows the restaurant operator to buy shares of its stock through open market purchases. Shares buyback plans are often an indication that the company’s leadership believes its shares are undervalued.
Wendy’s 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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