Should I Buy WEN? WEN 2026 Analysis

Should You Buy Wendy's Co (WEN) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

7.710

1 Day change

-2.90%

52 Week Range

15.940

Analysis Updated At

2026/01/26

Based on the data provided, Wendy's Co (WEN) is not a strong buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock is facing multiple headwinds, including declining financial performance, bearish analyst sentiment, and a lack of clear positive catalysts. While there is potential for international growth and a turnaround under new leadership, these factors are speculative and do not outweigh the current challenges.

Technical Analysis

The technical indicators are mixed. The MACD is slightly positive, suggesting mild bullish momentum, but the RSI is neutral, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its pivot level of $8.427, with resistance at $8.656 and support at $8.198. Overall, the technical setup does not indicate a strong buy signal.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

The options data shows a higher volume of call options relative to puts, suggesting some bullish sentiment. However, the high open interest put-call ratio indicates a balanced or slightly cautious outlook among traders.

Technical Summary

Sell

Buy

Positive Catalysts

The company expects over 9% international net unit growth in 2025 as part of its Project Fresh initiative.
Progress in CEO search with a focus on strategic leadership to support a turnaround.

Neutral/Negative Catalysts

Declining financial performance in Q3 2025, with revenue, net income, EPS, and gross margin all dropping YoY.
Bearish analyst sentiment, with multiple firms lowering price targets and issuing underweight or neutral ratings.
Weak technical indicators and bearish moving averages.
Concerns about short-term risks reflected in the high trading volume of $7 strike put options.

Financial Performance

In Q3 2025, Wendy's reported a revenue decline of -3.04% YoY to $549.5M, net income dropped -11.89% YoY to $44.25M, EPS declined -8.00% YoY to $0.23, and gross margin fell -7.49% to 46.07%. These figures indicate a challenging financial environment for the company.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analyst sentiment is predominantly bearish. Recent price target reductions include Morgan Stanley lowering its target to $8 with an underweight rating, Mizuho lowering its target to $7 with an underperform rating, and UBS lowering its target to $8.50 with a neutral rating. Analysts cite challenges such as competition, macroeconomic pressures, and limited pricing power as ongoing headwinds for Wendy's.

20 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 9.39 USD with a low forecast of 8 USD and a high forecast of 11 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

14 Hold

4 Sell

Hold

Current: 7.940

Low

Averages

9.39

High

Current: 7.940

Low

Averages

9.39

High

Morgan Stanley

NULL -> Underweight

downgrade

$9 -> $8

AI Analysis

2026-01-20

Reason

Morgan Stanley

Price Target

$9 -> $8

AI Analysis

2026-01-20

downgrade

NULL -> Underweight

Reason

Morgan Stanley lowered the firm's price target on Wendy's to $8 from $9 and keeps an Underweight rating on the shares as part of the firm's 2026 outlook note on its restaurants and foodservice distributors coverage.

Mizuho

Nick Setyan

Underperform

downgrade

$8 -> $7

2026-01-09

Reason

Mizuho

Nick Setyan

Price Target

$8 -> $7

2026-01-09

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.

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WEN Should I Buy

WEN Should I Buy

Should You Buy Wendy's Co (WEN) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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