Update shared on 06 Nov 2025
Fair value Decreased 2.05%Wendy's analyst price target has been revised downward to $11.13 from $11.36. Analysts cite a cautious sector outlook, slowing consumer demand, and ongoing challenges impacting near-term restaurant performance.
Analyst Commentary
Recent updates from Wall Street shed light on mixed sentiment surrounding Wendy's, as analysts assess ongoing industry challenges and shifts in consumer behavior. Valuation adjustments and stock ratings reflect a careful approach to the near-term prospects for the company.
Bullish Takeaways- Some analysts believe the company’s recent valuation already accounts for softer near-term performance. This could limit further downside for the stock.
- Wendy's most recent earnings topped certain expectations on cost management, with favorable general and administrative expense control noted.
- Despite reduced forecasts, there are optimistic views that any stabilization in U.S. demand could enable the company to outperform lowered expectations.
- Several analysts remain concerned about lackluster consumer spending and deteriorating demand trends, with notable weakness in comparable sales during the latest quarter.
- Ongoing leadership and marketing challenges have led to execution hurdles. This includes delays in new product launches and worries about management direction.
- There is broad caution regarding Wendy's growth outlook, with pricing power and profitability under pressure from rising food inflation and heavy value competition within the sector.
- Strategic shifts and macro headwinds are seen as significant obstacles. Franchisees have also voiced concern around the effectiveness of new initiatives.
What's in the News
- Piper Sandler lowered its price target on Wendy's to $13 from $15, but maintained an Overweight rating on the shares (Piper Sandler).
- Barclays reduced its price target on Wendy's to $11 from $13, citing persistent headwinds expected to last through late 2025 and franchisee concerns about profitability under new strategies (Barclays).
- Wendy's announced the nationwide launch of new, premium Chicken Tenders, along with six new dipping sauces, including Sweet Chili, Scorchin' Hot, and Signature flavors.
- The company debuted several new fall-inspired menu items in Canada, such as Caramel Toffee Frosty, Toasty Coconut Crave Iced Coffee, and limited-time dipping sauces like Mango Habanero and Dill Pickle.
- Wendy's was removed from the S&P 400 and S&P 400 Consumer Discretionary sector, but added to the S&P 600 and its Consumer Discretionary sector.
Valuation Changes
- Consensus Analyst Price Target has fallen slightly, decreasing from $11.36 to $11.13 per share.
- Discount Rate remains unchanged at 12.32%.
- Revenue Growth projection is essentially flat and holding steady near 1.16%.
- Net Profit Margin is stable at approximately 9.1%.
- Future P/E has declined modestly, moving from 11.90x to 11.65x.
Disclaimer
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