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Wendy’s Co (NASDAQ:WEN) shares tumbled to $12.95, marking a new 52-week low, with InvestingPro data showing the stock’s RSI in oversold territory. The fast-food giant faces headwinds despite maintaining strong fundamentals, including a healthy 7.5% dividend yield and a current ratio of 1.85x. The stock’s latest dip underscores a significant retreat, with a one-year total return of -23.47%. According to InvestingPro analysis, the company appears undervalued at current levels, supported by 23 consecutive years of dividend payments and projected profitability for the year ahead. Investors monitoring the company’s strategic moves can access 12 additional exclusive ProTips and comprehensive valuation metrics through InvestingPro’s detailed research report.
In other recent news, Wendy’s has outlined ambitious growth targets during its Investor Day, aiming for a 3-4% annual increase in net units, 5-6% growth in systemwide sales, and 7-8% growth in adjusted EBITDA. The fast-food chain plans to add 1,000 new restaurants worldwide by 2028, projecting global systemwide sales of $17.5 to $18.0 billion and adjusted EBITDA of $650 to $700 million. Analysts have responded with mixed reactions. Bernstein SocGen Group maintained a Market Perform rating with an $18 price target, citing Wendy’s promising long-term growth strategy. UBS, however, raised its price target to $16, noting challenges such as macroeconomic headwinds despite the positive growth outlook. JPMorgan adjusted its price target to $17 from $20, reflecting a cautious stance as the company undergoes internal changes under new leadership. Meanwhile, UBS previously reduced its price target to $15 following Wendy’s fourth-quarter results, which showed solid same-store sales and adjusted EBITDA exceeding expectations. These developments highlight Wendy’s strategic focus on expansion and enhanced customer experience while navigating industry challenges.
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