Analysts Cautious on The Wendy’s Company (WEN) Amid Cost and Margin Pressures

The Wendy’s Company (NASDAQ:WEN) is included successful our database of the best edifice stocks to bargain now.

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The Wendy’s Company (NASDAQ:WEN) saw expert unit rising astatine the extremity of December, with RBC Capital reducing its terms people from $9.00 to $8.50 connected December 22, 2025, portion reiterating a “Sector Perform” rating. The firm’s simplification successful its terms people reflects outgo and borderline risks heading into 2026, believing that statement G&A disbursal assumptions look understated. Acknowledging that 2025 G&A declines were owed to little inducement compensation, the concern steadfast projects that fiscal 2026 G&A could emergence to $285-290 million. This projection is good supra the Street estimation of $264.6 million.

Furthermore, RBC Capital projects imaginable downside to restaurant-level margins (RLMs), driven by unit from U.S. same-store income maturation of 0%-1% alongside heightened beef inflation. The company-owned restaurants lend astir 37% of operating profit. Thus, the concern steadfast believes that a simplification successful RLMs to 12.7% from 13.5% could effect successful a 3.5% EPS headwind. Accordingly, the concern steadfast lowered its 2026 EPS forecast by 13.0% to $0.68 and its 2027 EPS forecast by 11.8% to $0.79.

The period besides witnessed a bearish outlook from analysts. On December 17, 2025, Goldman Sachs reduced its terms people connected The Wendy’s Company (NASDAQ:WEN) from $9 to $8, reiterating a “Sell” rating. Two weeks earlier, JPMorgan besides reduced its terms people from $12 to $9 and downgraded the banal to “Neutral.” The firm’s cautious stance reflects anemic U.S. strategy economics, declining mean portion volumes, and elevated superior requirements tied to developments, remodels, and exertion investments.

The Wendy’s Company (NASDAQ:WEN), a U.S.-based fast-food relation and franchisor with implicit 7,000 restaurants globally, focuses connected burgers, chicken, and quick-service dining.

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