BTIG reiterates Neutral rating on Wendy’s stock amid challenging quarter

Published 08/08/2025, 22:14
BTIG reiterates Neutral rating on Wendy’s stock amid challenging quarter

Investing.com - BTIG maintained its Neutral rating on Wendy’s (NASDAQ:WEN) stock following the fast-food chain’s disappointing quarterly results. The stock currently trades at $10.09, near its 52-week low of $9.74, with a P/E ratio of 10.63x.

The research firm noted that while the results were disappointing, they weren’t surprising given recent commentary from other restaurant operators about challenging consumer conditions and uneven July trends. According to InvestingPro, eight analysts have recently revised their earnings expectations downward for the upcoming period.

BTIG acknowledged management’s swift response to traffic declines, including plans for new menu innovation with chicken tenders and beverages scheduled for the second half of 2025, along with more deliberate marketing and promotions.

The firm believes Wendy’s offers superior products compared to most quick-service hamburger competitors but expressed concern that recent promotions haven’t consistently reinforced this advantage, noting a longer-term need for franchise investment to modernize restaurants.

Despite Wendy’s shares being down 38% year-to-date and trading below 9.5x EV/EBITDA, BTIG maintained its Neutral stance, citing difficulty identifying a catalyst that could reverse market sentiment in the near future.

In other recent news, Wendy’s has experienced several notable developments impacting its outlook. Barclays (LON:BARC), TD Cowen, and UBS have all lowered their price targets for Wendy’s stock to $11, citing ongoing challenges and a tough industry environment. Barclays highlighted that the first half of 2025 has been especially difficult for Wendy’s, with sales slowing down and significant challenges anticipated in the fourth quarter. Similarly, UBS pointed to sales pressures and a challenging macro environment as reasons for the reduced price target. Evercore ISI, however, has maintained its In Line rating with a $14 price target, emphasizing the need for exceptional execution in marketing and innovation. In leadership news, Wendy’s appointed Pete Suerken as President of its U.S. operations, succeeding Pringle. Suerken, who previously led Wendy’s Quality Supply Chain Co-op, will report to interim CEO Ken Cook. These developments reflect the current strategic and operational shifts within the company.

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