The Wendy’s Company (NASDAQ:WEN) stock gained around 6% on Friday after the company reported its preliminary results for the fourth quarter of 2022. The shareholders were happy with the improved sales numbers and higher dividends.
The board has doubled the quarterly dividend to $0.25 per share, along with a $500 million share repurchase program. The company has a dividend yield of 2.29%.
The performance also pushed the takeover deal away from Train Fund Management LP, Wendy’s largest shareholder. The hedge fund is in full support of the company’s plan to allocate more funds toward shareholder returns.
Nelson Peltz, the company’s CEO, commented, “the Company is well-positioned to deliver significant long-term value for shareholders and looks forward to continuing to work with the board and leadership team to do so.”
Diving into the results, the company’s revenue for the quarter jumped by 13.4% to $536 million, driven by the digital push in its sales in the U.S. and internationally. The company, which opened more than 275 restaurants in 2022, saw an increase of 9.2% in its quarterly operating profits of $84 million. However, the operating profit for the year was down by 3.7%.
Even though customers are tightening their budgets on food, the company is confident of its ability to attract them with its discount deals and offers.
Is Wendy’s a Good Stock to Buy?
Overall, the stock has been trading up by 16% in the last six months.
According to TipRanks’ analyst consensus, Wendy’s stock has a Hold rating. The stock has a total of 14 recommendations, out of which four are Buy.
The WEN target price of $23.14 is almost similar to the stock’s current trading price of $23.04.
