Wendy's Price Target Lowered to $11 by TD Cowen; Analysts Forecast 30.49% Upside

Wendy's (WEN) price target has been lowered by TD Cowen to $11.00, a 15.38% decrease, maintaining a 'Hold' rating. Analysts have also lowered price targets from UBS, Citigroup, Stephens & Co., B of A Securities, and Loop Capital. The average analyst price target is $13.08, implying a 30.49% upside from the current price of $10.02. The average brokerage recommendation is 2.8, indicating a "Hold" status. The estimated GF Value in one year is $21.40, suggesting a 113.57% upside from the current price.

Wendy's (WEN) has seen a significant reduction in its stock price target by TD Cowen, which lowered its target to $11.00 from $13.00, a 15.4% decrease. This move, coupled with similar downgrades from other analysts, reflects a more cautious outlook on the fast-food chain's near-term performance [1].

The analysts cited several factors contributing to this downward revision. Wendy's focus on collaborations, chicken products, and specialty beverages has been noted, but the challenging industry environment and tough year-over-year comparisons expected in the second half of 2025 have raised concerns. Additionally, the company's reduced advertising budget for the second half of 2025 is seen as a potential threat to sales, as competitors increase their focus on value offerings and menu innovation [1].

Wendy's recent second-quarter earnings report provided some insight into the company's current financial health. Revenue for the period ended June 2025 was $560.93 million, representing a year-over-year decline of 1.7%. EPS of $0.29 for the same period compares to $0.27 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $555.52 million, representing a surprise of +0.97%. The company delivered an EPS surprise of +16%, with the consensus EPS estimate being $0.25 [2].

Despite the challenges, Wendy's maintains a 5.62% dividend yield and has consistently paid dividends for 23 consecutive years. The company also announced plans to expand its global footprint by opening 190 new restaurants across Italy and Armenia, with the first openings expected in Milan and Yerevan, respectively. Additionally, Wendy's appointed Pete Suerken as the new President of its U.S. operations [1].

Loop Capital has lowered its price target for Wendy's to $16, maintaining a Buy rating, due to a reported decline in U.S. same-store sales. Similarly, UBS reduced its price target to $11, citing sales pressures and a challenging macroeconomic environment. Evercore ISI has maintained its In Line rating with a $14 price target, emphasizing the need for strong execution in marketing and innovation [1].

Shares of Wendy's have returned -11.8% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term [2].

The estimated GF Value in one year is $21.40, suggesting a 113.57% upside from the current price. The average analyst price target is $13.08, implying a 30.49% upside from the current price of $10.02. The average brokerage recommendation is 2.8, indicating a "Hold" status [3].

References:
[1] https://www.investing.com/news/analyst-ratings/td-cowen-lowers-wendys-stock-price-target-to-11-from-13-on-tough-outlook-93CH-4181379
[2] https://finance.yahoo.com/news/wendys-wen-q2-earnings-taking-010001165.html
[3] https://seekingalpha.com/news/4482448-wendys-non-gaap-eps-of-0_29-beats-by-0_04-revenue-of-560_9m-beats-by-2_87m