Analyst Andrew Charles from TD Cowen maintained a Hold rating on Wendy’s (WEN – Research Report) and keeping the price target at $16.00.
Andrew Charles has given his Hold rating due to a combination of factors influencing Wendy’s current market position. The company is focusing on strategic collaborations, such as the successful SpongeBob Krabby Patty promotion, and plans to introduce new products like a revamped chicken sandwich. These initiatives aim to enhance brand relevance and attract younger demographics, particularly Gen Z.
However, despite these efforts, the overall industry challenges present a significant headwind, as highlighted in the 2025 outlook. Additionally, franchisee cash flow and returns have not shown substantial improvement, which could impact long-term growth. While Wendy’s is committed to increasing breakfast sales and improving margins through their Model of Excellence, the uncertain industry environment tempers expectations, leading to the Hold rating.
In another report released on March 3, RBC Capital also maintained a Hold rating on the stock with a $17.00 price target.