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Wendy's Company (The) (WEN) Stock Analysis

Recovery setup · Catalyst-Driven edge

SellVALUE-TRAP 2/5High Confidence

Consumer Cyclical · Restaurants

Sell if holding. Analyst target reached at $6.88 — A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 35.3): -1.5.

The Wendy's Company, together with its subsidiaries, engages in the operation, development, and franchising of a system of quick-service restaurants in the United States and internationally. The company operates through the Wendy's U.S., Wendy's International, and Global Real... Read more

$6.88+3.0% A.UpsideScore 4.7/10#16 of 20 Restaurants
Stop $6.43Target $7.09(analyst − 10%)A.R:R 0.4:1
Analyst target$7.88+14.5%22 analysts
$7.09our TP
$6.88price
$7.88mean
$5
$13

Sell if holding. Analyst target reached at $6.88 — A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 35.3): -1.5. Chart setup: Death cross but MACD improving, RSI 50. Score 4.7/10, high confidence.

Passes 4/8 gates (clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: aggressive.

Thesis

Rewards
Strong earnings beat streak (3/4)
Attractive valuation
Margin of safety: 47%
Risks
Analyst target reached - limited upside remaining
Leverage penalty (D/E 35.3): -1.5
Weak overall score: 4.7/10

Key Metrics

P/E (TTM)8.0
P/E (Fwd)10.5
Mkt Cap$1.3B
EV/EBITDA10.4
Profit Mgn7.6%
ROE87.6%
Rev Growth-5.5%
Beta0.41
Dividend8.28%
Rating analysts35

Quality Signals

Piotroski F6/9

Options Flow

P/C0.22bullish
IV74%elevated
Max Pain$3-56.4% vs spot

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers

Revenue shrinking — -5.5% YoY. Growth thesis broken unless recovery story develops.static

Earnings Growth
0.0
Revenue Growth
1.1
Declining revenue: -6%

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Volume
0.0
Obv
1.0
Ma Position
1.0
Rsi
4.5
Macd
6.0
Volume distribution (falling OBV)Below 200-MA, MA slope -6.7%/30d — confirmed downtrend
GatesMomentum 2.5<4.5A.R:R 0.4 < 1.5@spotDeath cross (50MA < 200MA)EARNINGS PROXIMITY 8d<=14d (soft)Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARRecoverySuitability: Aggressive
RSI
50 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $6.63Resistance $7.32

Price Targets

$6
$7
A.Upside+3.1%
A.R:R0.4:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Target reached (2.9% upside)
! Momentum score 2.5/10 — below 4.5 minimum
! Reward/Risk 0.4:1 at current price — below 1.5:1 minimum

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-05-08 (8d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is WEN stock a buy right now?

Sell if holding. Analyst target reached at $6.88 — A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 35.3): -1.5. Chart setup: Death cross but MACD improving, RSI 50. Prior stop was $6.43. Score 4.7/10, high confidence.

What is the WEN stock price target?

Take-profit target: $7.09 (+3.0% upside). Prior stop was $6.43. Stop-loss: $6.43.

What are the risks of investing in WEN?

Analyst target reached - limited upside remaining; Leverage penalty (D/E 35.3): -1.5; Weak overall score: 4.7/10.

Is WEN overvalued or undervalued?

Wendy's Company (The) trades at a P/E of 8.0 (forward 10.5). TrendMatrix value score: 7.4/10. Verdict: Sell.

What do analysts say about WEN?

35 analysts cover WEN with a consensus score of 2.8/5. Average price target: $8.

What does Wendy's Company (The) do?The Wendy's Company, together with its subsidiaries, engages in the operation, development, and franchising of a system...

The Wendy's Company, together with its subsidiaries, engages in the operation, development, and franchising of a system of quick-service restaurants in the United States and internationally. The company operates through the Wendy's U.S., Wendy's International, and Global Real Estate & Development segments. Its restaurants offer a menu that includes hamburger sandwiches and chicken sandwiches; chicken tenders and nuggets, chili, french fries, baked potatoes, salads, soft drinks, Frosty desserts, and kids' meals; breakfast menu, including the Breakfast Baconator sandwich and seasoned products; and a variety of promotional products on a limited time basis. The company also owns and leases real estate properties. As of December 28, 2025, there were 5,969 Wendy's restaurants in operation in the United States and 1,428 Wendy's restaurants in operation in 38 foreign countries and U.S. territories. The company was formerly known as Wendy's/Arby's Group, Inc. and changed its name to The Wendy's Company in July 2011. The Wendy's Company was founded in 1969 and is headquartered in Dublin, Ohio.

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