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Investing.com - TD Cowen has reduced its price target on Wendy’s (NASDAQ:WEN) to $11.00 from $13.00 while maintaining a Hold rating on the fast-food chain’s stock. The stock currently trades at $9.99, near its 52-week low of $9.74, with a P/E ratio of 10.67x.
The firm cited Wendy’s focus on collaborations, chicken products, and specialty beverages, but expressed concern about the challenging industry environment that has affected competitors and difficult year-over-year comparisons expected in the second half of 2025. Despite these challenges, Wendy’s maintains a 5.62% dividend yield and has consistently paid dividends for 23 consecutive years.
TD Cowen specifically noted worries about Wendy’s reduced advertising budget for the second half of 2025, which is lower both compared to the first half of 2025 and year-over-year figures, attributing the reduction to underperforming sales. According to InvestingPro, eight analysts have recently revised their earnings estimates downward for the upcoming period.
The research firm suggested that the decreased marketing spend could leave Wendy’s sales under pressure as burger competitors increase their focus on value offerings and menu innovation.
The price target adjustment represents a 15.4% reduction from the previous $13.00 target, reflecting TD Cowen’s more cautious outlook on Wendy’s near-term performance amid these industry challenges.
In other recent news, Wendy’s has announced plans to expand its global footprint by opening 190 new restaurants across Italy and Armenia. The company has signed agreements to develop 170 locations in Italy and 20 in Armenia, with the first openings expected in Milan and Yerevan, respectively. Meanwhile, Wendy’s has appointed Pete Suerken as the new President of its U.S. operations, following his previous role as President and CEO of Wendy’s Quality Supply Chain Co-op. On the financial front, Loop Capital has lowered its price target for Wendy’s to $16, maintaining a Buy rating, due to a reported decline in U.S. same-store sales. Similarly, UBS reduced its price target to $11, citing sales pressures and a challenging macroeconomic environment. Evercore ISI has maintained its In Line rating with a $14 price target, emphasizing the need for strong execution in marketing and innovation. These developments come as Wendy’s prepares to release its second-quarter earnings report.
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