From Yahoo Finance: 2025-05-05 09:36:00

JPMorgan analysts upgraded Wendy’s stock to “overweight” from “neutral” on Monday but lowered the price target to $15 by the end of 2026. Wendy’s no longer expects sales growth this year due to disappointing sales reports, with a potential decline in 2025.

Wendy’s and McDonald’s reported weaker first-quarter sales than expected, attributing economic pressures to low- and middle-income consumers. Wendy’s shares were up 3% in early trading but have lost about a fifth of their value since the beginning of the year.

Analysts are cautiously optimistic about Wendy’s stock, citing room for improvement in free cash flow and international growth opportunities. However, a 2% decline in fast-food traffic compared to pre-pandemic levels raises concerns. Wendy’s has a consensus price target of about $14, with analysts split on ratings.

Read more: A Cautious Wendy’s Upgrade Is The Latest Sign of Concern for Fast-Food Stocks