WEN stock: buy or sell?

WEN stock price: $22.96 -1.84% At close on February 25th, 2020

Updated on:
February 25th, 2020

5

Shares of Wendy's closed today at $22.96 after marking a new all time high ($24.04) even it couldn't close with gains and dropped an awful -1.84%.

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. That's why is so important to choose your own trading plan that matches with your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

These 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?

Banks and financial institutions post stock ratings everyday. Unfortunately, we couldn't find any rating for WEN stock for the last month.

WEN stock analysis

Daily outlook

After climbing to all-time highs several times in past weeks, Wendy's dropped -1.84% to $22.96.

Wendy's closed today at $22.96 after reaching a new all time high ($24.04) even it couldn't close with gains and dropped an awful -1.84%. Since last Feb/3 when WEN stock price broke up the SMA50d line, it gained $1.29 (5.95%).

WEN stock chart (daily)

Weekly outlook

Wendy's touched new all time highs back again this week, marking to $24.04. Shares ended at $22.96 and dropped -4.09% during the week.

WEN shows a strong mid-term uptrend with several rising tops and rising bottoms. Since its last bottom by mid January, WEN climbed unceasignly breaking out to new all time highs. Since SMA20d and SMA40w crossed up late April 2019, WEN price climbed $4.49 per share (24.31%). Late March 2019 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 IPO was on May 7th, 1980 at $0.00 per share1. Since then, WEN stock surged a inf%, with a yearly average of inf%. If you had invested right after WEN's IPO a $1,000 in WEN stock in 1980, it would worth $inf 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 $24.04.

WEN stock price target

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. 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. For the last month we have not found any price forecast for Wendy's stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last May, when Wendy's published its last earnings report, it . As soon as we get its posted EPS from the earnings report, we will extend this report.
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

Compared to 2017, last anual revenues report draw a super good growth of 29.96% to $1,589.94 million USD. When comparing 2018 vs 2017, in line, profit margin (that is, the net income divided by revenues) boosted a 13.08% to 28.94%.

To have an up to date 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 dollars. When comparing this TTM figures with the last reported annuality, we can esteem Wendy's business evolution since December 2018: Annual turnover up to , compared to lastest yearly report, collapsed a hair-raising -23.94%. Regarding profit margin, Wendy's jumped 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 sales for 2019-Q1, a -100.00% less compared to previous quarter. Reported quarter earnings marked million with a profit margin of . Profit margin stayed steady a 0.00% compared to previous quarter when profit margin was 4.73%. When comparing turnover to same quarter last year, Wendy's sales marked a dreadful decrease and plummed 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 check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Wendy's, 7.48% of all outstanding shares are owned by its staff.

In case of Wendy's stock, 75.43% 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.

For a better understanding, the following table shows ownership data compared to other related companies:

WEN
Market cap$5.2 B
Total shares226.0 M
Float shares183.7 M
  - Institutional holdings (%)75.4%
  - Insider holdings (%)7.5%
Shares in short selling0.0%

WEN summary

Tuesday, February 25th, 2020
Open$23.55
Close$22.96
Day range$22.93 - $24.04
Previous close$23.39
Session gain-1.84%
Average true range$0.47
50d mov avg$22.20
100d mov avg$21.56
200d mov avg$20.51
Daily pattern
Weekly pattern lb03c

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 selected as the bechmarking frame for Wendy's stock.
Stock3m6m12m
WENWendy's7.09%4.94%34.98%

Wendy's competitors

Unfortunately, we could not find any public company that could be defined as Wendy's competitor. This doesn't mean Wendy's does not have any competitor in the market, it's just we could not detected it.