WEN stock: buy or sell?

WEN stock price: $21.56 0.28% At close on December 6th, 2019

Updated on:
December 6th, 2019

5

Wendy's remained stable a slightly fine 0.28% and closed at $21.56. Dec 6th was the third green day in a row, gaining 0.77%.

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?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to define your own trading strategy that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Wendy's stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean WEN will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Wendy's stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 15 ratings published for WEN stock in the last 30 days.

Is WEN a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-3Peel Huntn/aBuy
2019-9-13Cowenn/aBuy
2019-9-11Peel Huntn/aBuy
2019-9-10Wells Fargo & Con/aMarket Perform
2019-9-10SunTrust Banksn/aBuy
2019-9-10BTIG ResearchBuyNeutral
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

WEN stock analysis

Daily outlook

Wendy's closed on December 6th at $21.56 and remained constant a slightly fine 0.28%.

Wendy's shares remained steady 0.28% to $21.56 on Dec 6th. WEN is retaking the upward trend marking a new rising bottom heading to break out over $22.08. On August WEN price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. On September, WEN hit a new all time high, pushing higher than on September tops. Check different trading setups that use ATHs as triggers.

WEN stock chart (daily)

Weekly outlook

Shares of Wendy's stepped up a tiny 0.56% this week. With this, it's been 3 climbing weeks in a row, soaring a 5.21%.

From a weekly outlook, WEN marked an uptrend of rising tops and rising bottoms. Since its last top late October at $21.81, price slid and bounced up back from $20.21. Breaking down under $20.21 would cancel the current uptrend and it might test lower supports. Note that $21.81 might act as a resistance line. Not so far away is the last price record Wendy's marked early September. Late April, SMA20w and SMA40w crossed up triggering a rise of 16.73%. 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 IPO was on May 7th, 1980 at $0.00 per share1. Since then, WEN stock grew 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 on September with a price of $22.71.

WEN stock price target is $20.20

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. 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 30 days we found 11 price forecasts for Wendy's stock:
WEN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-13CowenReiteratesn/a$22.00-
2019-9-10Wells Fargo & CoRaises Target$19.00$20.005.3%
2019-9-10SunTrust BanksRaises Target$22.00$24.009.1%
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-
(in average)$20.30$20.200.0%
The price prediction for Wendy's stock is $20.20, moving in a range between $24.00 and $17.50. In average, analysts' outlook on WEN price forecast is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

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

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

Wendy's fiscal year ends in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Wendy's TTM sales up to were $1,209.37 and earnings $439.96 M dollars. If we compare this TTM figures with the last reported annuality, we can esteem Wendy's business evolution since December 2018: Annual revenues up to , compared to lastest yearly report, plummed 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 posted million in revenues for 2019-Q1, a -100.00% less compared to previous quarter. Reported quarter income marked million with a profit margin of . Profit margin stayed stable a 0.00% compared to previous quarter when profit margin was 4.73%. When comparing revenues to same quarter last year, Wendy's sales marked a spooky slide and plunged a -100.00%. Looking back to recent quarterly results, Wendy's posted 3 negative 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 a stock, it's always worth to have a look 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, 8.08% of all outstanding shares are owned by its staff.

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$4.9 B$893.3 M$6.3 B$11.7 B$19.6 M
Total shares226.0 M124.1 M82.8 M40.9 M12.5 M
Float shares182.4 M118.5 M82.5 M38.4 M10.1 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

Friday, December 6th, 2019
Open$21.76
Close$21.56
Day range$21.38 - $21.77
Previous close$21.50
Session gain0.28%
Average true range$0.45
50d mov avg$20.81
100d mov avg$20.35
200d mov avg$19.26
Daily patternlb02a
Weekly pattern lb03a

Wendy's performance

To better understand Wendy's performance you must becnhmark its gains with other related stocks in same sector or 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's-3.14%9.55%28.72%
ARCOArcos Dorados6.82%10.77%-8.86%
DNKNDunkin' Brand...-6.24%-1.53%9.06%
DPZDomino's Pizz...21.05%0.34%12.02%
GTIMGood Times Restau...-12.36%-17.89%-61.10%
JACKJack In The Box-9.23%-7.11%-2.37%
MCDMcDonald's-10.65%-3.82%9.35%
RAVERave Restaurant-31.25%-40.14%37.50%
TASTCarrols Restauran...-12.79%-14.64%-31.60%
YUMYum! Brands-16.79%-8.72%11.05%

Wendy's competitors

We picked a few stocks to conform a list of Wendy's competitors to check if you are interested in investing in WEN: