Bernstein analyst Danilo Gargiulo has maintained their neutral stance on WEN stock, giving a Hold rating today.
Danilo Gargiulo has given his Hold rating due to a combination of factors impacting Wendy’s performance. The company’s first-quarter results for 2025 fell short of expectations, with same-store sales growth declining more than anticipated. This underperformance is attributed to adverse weather conditions and challenging macroeconomic factors, suggesting that despite efforts to manage controllable elements, sales growth remains elusive. Furthermore, the quick-service restaurant industry, including Wendy’s, is no longer benefiting from consumers trading down, as significant price increases have eroded this advantage.
Despite a promising innovation pipeline, Wendy’s has reduced its guidance for global systemwide sales growth and EBITDA for fiscal year 2025, reflecting ongoing macroeconomic pressures and increased commodity costs. Concerns about franchisee economics, which could hinder future unit growth in the U.S., add to the cautious outlook. While Wendy’s continues its share repurchase program, the stock remains a ‘show me’ story, requiring management to demonstrate resilience and gain investor confidence to close the valuation gap with peers. As a result, Gargiulo maintains a Market-Perform rating and adjusts the price target downward.
In another report released today, Stephens also maintained a Hold rating on the stock with a $14.00 price target.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WEN in relation to earlier this year.