Shift in Breakfast Preferences: Fast-food restaurants are losing breakfast customers to convenience stores, with morning meal traffic to fast-food chains rising only 1% while visits to food-forward convenience stores increased by 9% in the last three months.
Consumer Behavior and Market Trends: A significant portion of consumers (87%) still prepare breakfast at home, but convenience stores are gaining popularity due to their fresh food offerings and perceived value, with 72% of consumers viewing them as a viable alternative to fast-food chains.
Impact of Economic Factors: Rising menu prices and a tight job market have made breakfast the most economically sensitive meal, leading to a decline in fast-food breakfast visits, which fell 8.7% in the second quarter.
Competitive Strategies: Fast-food chains are now looking to convenience stores for inspiration on improving their breakfast offerings, as c-stores like Wawa and Casey's have successfully attracted more customers with diverse and quality food options.
Wall Street analysts forecast WEN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WEN is 9.66 USD with a low forecast of 7.00 USD and a high forecast of 12.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
23 Analyst Rating
Wall Street analysts forecast WEN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WEN is 9.66 USD with a low forecast of 7.00 USD and a high forecast of 12.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
16 Hold
5 Sell
Hold
Current: 8.340
Low
7.00
Averages
9.66
High
12.00
Current: 8.340
Low
7.00
Averages
9.66
High
12.00
Mizuho
Nick Setyan
Underperform
downgrade
$8 -> $7
Al Analysis
2026-01-09
New
Reason
Mizuho
Nick Setyan
Price Target
$8 -> $7
Al Analysis
2026-01-09
New
downgrade
Underperform
Reason
Mizuho analyst Nick Setyan lowered the firm's price target on Wendy's to $7 from $8 and keeps an Underperform rating on the shares. The firm adjusted targets in the restaurant group as part of its 2026 outlook. Mizuho's base case remains a restaurant price war continues this year to combat traffic share loss to grocery as a result of higher post-COVID relative price increases. Casual diners are best positioned to outperform, followed by coffee and fast casual, with quick service positioned least favorably, the analyst tells investors in a research note. Mizuho's top pick remains Dutch Bros. It added Brinker and Cheesecake Factory to its top three, while removing Domino's Pizza and Wingstop.
Truist
Buy
downgrade
$12 -> $11
2026-01-08
Reason
Truist
Price Target
$12 -> $11
2026-01-08
downgrade
Buy
Reason
Truist lowered the firm's price target on Wendy's to $11 from $12 and keeps a Buy rating on the shares. After a challenging year for restaurants, the outlook for 2026 is mixed, with temporary tailwinds from tax refunds and favorable weather but ongoing headwinds from slowing job growth, consumer confidence, and commodity inflation, the analyst tells investors in a research note.
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Evercore ISI
In Line
downgrade
$11 -> $9
2026-01-08
Reason
Evercore ISI
Price Target
$11 -> $9
2026-01-08
downgrade
In Line
Reason
Evercore ISI lowered the firm's price target on Wendy's to $9 from $11 and keeps an In Line rating on the shares. The U.S. fast food market faced a tough 2025, but there's optimism for 2026 with fiscal stimulus, better execution, and international growth, the analyst tells investors in a 2026 outlook note for the group.
UBS
Neutral
downgrade
2026-01-06
Reason
UBS
Price Target
2026-01-06
downgrade
Neutral
Reason
UBS lowered the firm's price target on Wendy's to $8.50 from $9.50 and keeps a Neutral rating on the shares. The restaurant sector setup is expected to improve in 2026 after heavy pressure in 2025, with upside from stimulus benefits, easier comparisons, and more attractive valuations, though macro pressures on lower-income and younger consumers may weigh on the second half, the analyst tells investors in a research note. Industry same-store sales should modestly improve but remain in the low single digits with negative traffic, while margin gains are likely but tempered by limited pricing power, higher discounting, and food inflation risks, UBS adds.
About WEN
The Wendy’s Company is primarily engaged in the business of operating, developing and franchising a system of distinctive quick-service restaurants. The Company’s menu includes made-to-order square hamburgers using beef, and fan favorites like the Spicy Chicken Sandwich and nuggets, Baconator, and the Frosty dessert. Its segments include Wendy’s U.S., Wendy’s International and Global Real Estate & Development. Wendy’s U.S. includes the operation and franchising of its restaurants in the United States. Wendy’s International includes the operation and franchising of its restaurants in countries and territories other than the United States. Global Real Estate & Development includes real estate activity for owned sites and sites leased from third parties, which are leased and/or subleased to franchisees, and also includes its share of the income of its Canadian restaurant real estate joint venture (TimWen). The Company and its franchisees have over 7,000 restaurants worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
