Wendys (NASDAQ:WEN) Posts Earnings Results, Beats Expectations By $0.04 EPS

Wendys (NASDAQ:WEN) released its earnings results on Wednesday. The restaurant operator reported $0.19 EPS for the quarter, topping analysts’ consensus estimates of $0.15 by $0.04, Briefing.com reports. Wendys had a net margin of 28.88% and a return on equity of 23.16%. The business had revenue of $437.88 million for the quarter, compared to the consensus estimate of $434.45 million. During the same period in the previous year, the firm earned $0.17 EPS. The business’s revenue for the quarter was up 9.3% on a year-over-year basis. Wendys updated its FY19 guidance to $0.58-0.60 EPS.

WEN traded down $0.33 on Friday, reaching $20.65. 3,309,900 shares of the company traded hands, compared to its average volume of 3,322,713. The company has a market cap of $4.81 billion, a price-to-earnings ratio of 35.00, a PEG ratio of 3.00 and a beta of 0.67. Wendys has a 52-week low of $14.96 and a 52-week high of $22.84. The stock’s 50 day moving average price is $20.76 and its 200-day moving average price is $19.83. The company has a debt-to-equity ratio of 5.67, a current ratio of 1.97 and a quick ratio of 1.96.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 16th. Investors of record on Monday, December 2nd will be given a dividend of $0.12 per share. The ex-dividend date of this dividend is Friday, November 29th. This is an increase from Wendys’s previous quarterly dividend of $0.10. This represents a $0.48 dividend on an annualized basis and a yield of 2.32%. Wendys’s payout ratio is presently 67.80%.

In related news, major shareholder Trian Fund Management, L.P. sold 475,000 shares of the company’s stock in a transaction on Thursday, August 15th. The shares were sold at an average price of $19.90, for a total transaction of $9,452,500.00. Following the completion of the transaction, the insider now directly owns 5,444,270 shares in the company, valued at approximately $108,340,973. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider E.J. Wunsch sold 3,694 shares of the business’s stock in a transaction on Friday, October 4th. The shares were sold at an average price of $20.51, for a total transaction of $75,763.94. Following the completion of the sale, the insider now directly owns 52,449 shares in the company, valued at approximately $1,075,728.99. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 2,478,694 shares of company stock valued at $49,468,264. Corporate insiders own 20.90% of the company’s stock.

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A number of analysts recently commented on WEN shares. Longbow Research set a $25.00 target price on shares of Wendys and gave the stock a “buy” rating in a report on Friday, September 13th. Stifel Nicolaus set a $22.00 target price on shares of Wendys and gave the stock a “hold” rating in a research report on Tuesday, October 15th. Zacks Investment Research downgraded shares of Wendys from a “hold” rating to a “sell” rating and set a $22.00 target price on the stock. in a research report on Monday, October 28th. Credit Suisse Group lifted their target price on shares of Wendys from $21.00 to $22.00 and gave the stock a “neutral” rating in a research report on Thursday. Finally, SunTrust Banks lifted their target price on shares of Wendys to $26.00 and gave the stock a “buy” rating in a research report on Monday, October 14th. Two equities research analysts have rated the stock with a sell rating, fourteen have given a hold rating and ten have issued a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and a consensus price target of $21.70.

Wendys Company Profile

The Wendy's Company, together its subsidiaries, operates as a quick-service restaurant company. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches. As of December 30, 2018, its restaurant system included 6,711 franchise restaurants, which comprise 353 owned and operated restaurants worldwide.

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Earnings History for Wendys (NASDAQ:WEN)

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