Insider Activity Update: Abigail Pringle Executes Options Exercise, Resulting In $267K At Wendy's

In a new SEC filing on May 6, it was revealed that Pringle, President at Wendy's WEN, executed a significant exercise of company stock options.

What Happened: Pringle, President at Wendy's, exercised stock options for 136,819 shares of WEN stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The exercise price of the options was $9.98 per share.

The Wednesday morning update indicates Wendy's shares up by 0.51%, currently priced at $11.93. At this value, Pringle's 136,819 shares are worth $267,257.

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.

Wendy's's Economic Impact: An Analysis

Revenue Growth: Wendy's's revenue growth over a period of 3 months 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. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Evaluating Earnings Performance:

• Gross Margin: The company sets a benchmark with a high gross margin of 28.27%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Wendy's exhibits below-average bottom-line performance with a current EPS of 0.2.

Debt Management: Wendy's's debt-to-equity ratio stands notably higher than the industry average, reaching 31.3. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: Wendy's's P/E ratio of 12.63 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.08 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Wendy's's EV/EBITDA ratio at 10.86 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Illuminating the Importance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Wendy's's Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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