WEN stock: buy or sell?

WEN stock price: $20.43 2.41% At close on August 19th, 2019

Updated on:
August 19th, 2019

5

Wendy's ended today at $20.43 after marking a new all time high ($20.63) and soared an excellent 2.41%. Monday was the 5th climbing day in a row, gaining 4.69%.

The Wendy's Company, through its subsidiaries, operates as a quick-service restaurant company worldwide. It is involved in operating, developing, and franchising a system of quick-service restaurants.

Should I buy WEN stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, 2 buy setups work for Wendy's stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Wendy's stock a buy?

Financial institutions and banks post stock ratings everyday. At Stocks2.com, we detected 12 ratings published for WEN stock in the last month.

Is WEN a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-13MKM Partnersn/aNeutral
2019-7-29Goldman Sachs Groupn/aSell
2019-6-28JPMorgan Chase & Co.n/aOverweight
2019-6-25Credit Suisse Groupn/aNeutral
2019-6-12Evercore ISIn/aIn-Line
2019-5-13Piper Jaffray Companiesn/aOverweight
2019-4-10Cowenn/aOutperform
2019-3-20MizuhoBuyNeutral
2019-2-11Wedbushn/aHold
2019-1-9WedbushOutperformNeutral
2019-1-9OppenheimerMarket PerformOutperform
2019-1-7Stifel NicolausBuyHold

WEN stock analysis

Daily outlook

Wendy's soared 2.41% to $20.43 after marking all time highs today.

After several days of continuous rises in past weeks, Wendy's soared 2.41% to $20.43. On August/6 WEN price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. Since last May when SMA100d and SMA200d crossed up, WEN price gained $1.94 per share (10.49%).

WEN stock chart (daily)

Weekly outlook

Wendy's jumped 2.41% this week and touched a new all time high at $20.63. Early August WEN skyrocketed a super good 8.82% in just one week. Counting this, it's been 3 climbing weeks in a row, soaring a 12.35%.

Since late April when SMA20w and SMA40w crossed up, WEN price gained $1.77 per share (9.49%). Late March WEN price bounced up over the SMA of 40 weeks that acted as support stopping new slides.

WEN stock chart (weekly)

WEN stock price history

WEN stock went public on May 7th, 1980 with a price of $0.501. Since then, WEN stock surged a 3,986.00%, with an average of 102.20% per year. If you had invested right after WEN's IPO a $1,000 in WEN stock in 1980, it would worth $39,860.00 today.

1: Adjusted price after possible price splits or reverse-splits.

WEN stock historical price chart

WEN stock reached all-time highs today with a price of $20.63.

WEN stock price target is $19.30

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' WEN stock price predictions in the hope that they will be met as they may be wrong and not met. We have 9 price forecasts for Wendy's stock released in the last 30 days:
WEN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-13MKM PartnersInitiatesn/a$20.00-
2019-7-29Goldman Sachs GroupInitiatesn/a$17.50-
2019-6-28JPMorgan Chase & Co.Raises Target$20.00$21.005%
2019-6-25Credit Suisse GroupInitiatesn/a$20.00-
2019-6-12Evercore ISIInitiatesn/a$20.00-
2019-5-13Piper Jaffray CompaniesInitiatesn/a$22.00-
2019-3-20MizuhoDowngradesn/a$18.00-
2019-2-11WedbushReiteratesn/a$17.50-
2019-1-9WedbushDowngradesn/a$17.50-
(in average)$20.00$19.30-4.0%
Moving in a range from $22.00 and $17.50, the price forecast for WEN stock is $19.30. In average, analysts' outlook on WEN price target is negative, downgrading the forecast by a -4.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After presenting its last earnings report on May, Wendy's jumped a remarkable 11.21%. Unfortunately, reported EPS is not yet available in our database.
WEN earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.09n/a
2017-Q2-n/a0.15n/a
2017-Q32017-11-080.120.09-25.0%
2017-Q42018-02-210.120.11-8.3%
2018-Q12018-05-080.10.1110.0%
2018-Q22018-08-070.160.14-12.5%
2018-Q32018-11-060.150.1713.3%
2018-Q42019-02-210.150.166.7%
2019-Q12019-05-08n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Wendy's annual turnover skyrocketed a dazzling 29.96% to $1,589.94 M USD from $1,223.41 marked in 2017. Similarly, its profit margin (compared to sales) rocketed to 28.94%, that is $460.12 million.

To have an updated picture of the financial situation of Wendy's, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Wendy's TTM sales up to were $1,209.37 and income was $439.96 million USD. If we compare this TTM figures with the last reported annuality, we can review Wendy's business evolution since December 2018: Annual revenues up to , compared to lastest yearly report, collapsed a dreadful -23.94%. Regarding profit margin, Wendy's escalated 7.44% to 28.94%

WEN annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$2,490 M-$46 M1.8%-
2014$2,061 M-17.23%$121 M5.9%165.43%
2015$1,870 M-9.26%$161 M8.6%32.70%
2016$1,435 M-23.25%$130 M9.0%-19.56%
2017$1,223 M-14.77%$194 M15.9%49.69%
2018$1,590 M29.96%$460 M28.9%137.14%
TTM $1,209 M-23.94%$440 M36.4%-4.38%

Quarterly financial results

Wendy's reported million in revenues for 2019-Q1, a -100.00% decline compared to previous quarter. Reported quarter earnings marked million with a profit margin of . Profit margin remained steady a 0.00% compared to previous quarter when profit margin was 4.73%. When comparing sales to same quarter last year, Wendy's sales marked a chilling decrease and plunged a -100.00%. Looking back to recent quarterly results, Wendy's posted 3 positive quarters in a row.
WEN quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$286 M-$22 M7.8%-
2017-Q2$320 M12.08%$-2 M-0.6%-108.28%
2017-Q3$308 M-3.85%$14 M4.6%-870.65%
2017-Q4$309 M0.40%$159 M51.5%1,017.18%
2018-Q1$381 M23.06%$20 M5.3%-87.34%
2018-Q2$411 M8.00%$30 M7.3%48.20%
2018-Q3$401 M-2.54%$391 M97.7%1,209.58%
2018-Q4$398 M-0.68%$19 M4.7%-95.19%

Wendy's ownership

When you are planning to buy shares of a stock, it's always worth to review its ownership structure.

Wendy's shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 8.08% of all shares.

In case of Wendy's stock, 78.91% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for WEN stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Wendy's:

WENARCODNKNDPZGTIM
Market cap$0.0 M$890.0 M$6.8 B$9.9 B$23.7 M
Total shares0.0 M123.6 M82.7 M42.3 M12.5 M
Float shares180.5 M116.4 M82.4 M38.2 M9.5 M
  - Institutional holdings (%)78.9%65.8%94.7%95.7%32.1%
  - Insider holdings (%)8.1%5.6%0.4%0.6%6.8%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

WEN summary

Monday, August 19th, 2019
Open$20.10
Close$20.43
Day range$19.95 - $20.63
Previous close$19.95
Session gain2.41%
Average true range$0.57
50d mov avg$19.27
100d mov avg$18.89
200d mov avg$17.85
Daily pattern
Weekly pattern

Wendy's performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We chose Arcos Dorados, Dunkin' Brands, Domino's Pizza, Good Times Restaurants, Jack In The Box, McDonald's, Rave Restaurant, Carrols Restaurant and Yum! Brands as the bechmarking frame for Wendy's stock.
Stock3m6m12m
WENWendy's8.27%16.61%17.21%
ARCOArcos Dorados19.40%-14.39%10.43%
DNKNDunkin' Brand...10.51%19.99%16.91%
DPZDomino's Pizz...-16.27%-16.17%-16.82%
GTIMGood Times Restau...-16.37%-28.68%-55.84%
JACKJack In The Box7.57%10.65%-1.50%
MCDMcDonald's10.30%22.88%38.94%
RAVERave Restaurant0.76%141.82%100.00%
TASTCarrols Restauran...-10.30%-18.41%-52.92%
YUMYum! Brands14.55%23.80%40.23%

Wendy's competitors

One check before investing in any stock is to review a list of its competitors, in this case for Wendy's. We picked 9 companies as Wendy's competitors as they are in the same industry or have similar market objectives.