Analyst Andrew Charles of TD Cowen maintained a Hold rating on Wendy’s, reducing the price target to $11.00.
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Andrew Charles has given his Hold rating due to a combination of factors that reflect Wendy’s current market challenges and strategic priorities. The company is focusing on collaborations and expanding its offerings in chicken and specialty beverages, but it faces a difficult industry environment and tough comparisons in the latter half of 2025. The reduction in advertising budget, both year-over-year and compared to the first half of 2025, raises concerns about sales pressure as competitors enhance their value and innovation efforts.
Moreover, the company’s U.S. same-store sales projections have been revised downward, with significant declines expected in the third and fourth quarters. Despite new product launches, such as the Takis Fuego Meal, sales have not met expectations, and breakfast sales continue to lag behind other dayparts. Management’s focus on executing major ideas with a reduced advertising budget indicates a cautious approach, with potential for investment in advertising only if a compelling return on investment is evident. These factors contribute to the Hold rating, as the company navigates these challenges while trying to capitalize on growth opportunities.
In another report released today, Evercore ISI also reiterated a Hold rating on the stock with a $14.00 price target.