Assessing Wendy's: Insights From 17 Financial Analysts

17 analysts have expressed a variety of opinions on Wendy's WEN over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $14.41, along with a high estimate of $21.00 and a low estimate of $11.00. A decline of 11.27% from the prior average price target is evident in the current average.

Exploring Analyst Ratings: An In-Depth Overview

The analysis of recent analyst actions sheds light on the perception of Wendy's by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Wendy's. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Wendy's compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Wendy's's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Capture valuable insights into Wendy's's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Wendy's analyst ratings.

All You Need to Know About Wendy's

The Wendy's Company is the second-largest burger quick-service restaurant, or QSR, chain in the United States by systemwide sales, with $12.6 billion in 2024, narrowly edging Burger King ($11.5 billion) and clocking in well behind wide-moat McDonald's ($51.1 billion). After divestitures of Tim Hortons (2006) and Arby's (2011), the firm manages just the burger banner, generating sales across a footprint that spanned more than 7,200 total stores in 30 countries as of year-end 2024. Wendy's generates revenue from the sale of hamburgers, chicken sandwiches, salads, and fries throughout its company-owned footprint, through franchise royalty and marketing fund payments remitted by its franchisees, which account for roughly 94% of stores, and through franchise flipping and advisory fees.

Financial Milestones: Wendy's's Journey

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Wendy's's revenue growth over a period of 3M has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -2.11%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Wendy's's net margin is impressive, surpassing industry averages. With a net margin of 7.49%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Wendy's's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 20.14% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Wendy's's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.79%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 31.3, caution is advised due to increased financial risk.

Analyst Ratings: Simplified

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.