Improved Q4 Results Sent Wendy’s Stock Soaring on NASDAQ

Wendy's stock

Wendy’s stock (WEN:NSD) saw a 6% increase on Friday following the release of the company’s preliminary Q4 2022 results. Shareholders were pleased with the improved sales numbers and higher dividends, with the board doubling the quarterly dividend to $0.25 per share and announcing a $500 million share repurchase program. The company’s dividend yield is now 2.29%.

The strong performance also pushed away a takeover attempt by Train Fund Management LP, Wendy’s largest shareholder. The hedge fund has expressed support for the company’s plans to allocate more funds toward shareholder returns.

Wendy’s CEO, Nelson Peltz, stated that the company is well-positioned to deliver long-term value for shareholders and is looking forward to continuing to work with the board and leadership team to do so.

The company’s Q4 revenue jumped 13.4% to $536 million, driven by a digital push in sales in the U.S. and internationally. Wendy’s also opened more than 275 restaurants in 2022, resulting in a 9.2% increase in its quarterly operating profits, which reached $84 million. However, the company’s operating profit for the year was down 3.7%.

Despite customers tightening their budgets on food, Wendy’s is confident in attracting them with its discount deals and offers.

When it comes to whether Wendy’s is a good stock to buy, Wendy’s stock has been trading up 16% in the last six months. According to Stock Target Advisor’s  analyst consensus, Wendy’s stock has a “Buy” rating, with 14 recommendations, four of which are “Buy.” The WEN target price of $23.86 is similar to the stock’s current trading price of $23.08.

 

About The Wendy’s Co (WEN:NSD):

The Wendy’s Company, together with its subsidiaries, operates as a quick-service restaurant company. It operates through three segments: Wendy’s U.S., Wendy’s International, and Global Real Estate & Development.

The company was formerly known as Wendy’s/Arby’s Group, Inc. and changed its name to The Wendy’s Company in July 2011. The Wendy’s Company was founded in 1969 and is headquartered in Dublin, Ohio.

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