Wendy's (WEN) PT Lowered to $6.50 at UBS

UBS analyst Dennis Geiger lowered the price target on Wendy's (NASDAQ: WEN) to $6.50 (from $8.00) while maintaining a Neutral rating.

The analyst comments "For WEN's 3Q earnings (11/5), we expect continued sss and earnings pressures, with focus on sales drivers to support recovery into '27. While WEN withdrew '26 guidance during the 2Q earnings call, we expect an emphasis on turnaround plans, including investments & potential levels of support for the franchise system, and a recovery roadmap. We expect a meaningful turnaround will take time, with an ultimate inflection in traffic trends a key priority and eventual milestone. We believe WEN will be able to improve trends over time given still solid brand affinity and strategic plans to drive sales. But we currently believe visibility is somewhat limited into the bridge between turnaround plans & likely investments and a sustained improvement in growth trajectory. While WEN valuation remains depressed relative to history (~14% Cons. NTM FCF yield; ~8% 5-yr avg), we're looking for increased visibility into an improved sales trajectory and accelerating multiyear unit expansion as drivers for upside potential."

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