Wendy’s shares moved higher after buyback announcement
2023.01.13 10:39
Wendy’s shares moved higher after buyback announcement
By Tiffany Smith
Budrigannews.com – McDonald’s (NYSE:) shares opened lower prior to climbing Friday following different news titles for the organization.
The preliminary results for Wendy’s fourth quarter showed that total revenue reached $536.5 million, an increase of 13.4% year-over-year. Additionally, it announced a new $500 million share repurchase program and a quarterly dividend of $0.25.
In the meantime, activist investor Nelson Peltz’s Trian Fund Management stated that it would not attempt to acquire Wendy’s. Evercore ISI also downgraded the stock to In Line and added it to its Tactical Underperform list.
Trian said it was thinking about buying the fast food restaurant company last year. However, the hedge fund said in a filing that Wendy’s “appropriate path to enhance shareholder value at this time” was returning additional capital to shareholders through its announced repurchase program and increased cash dividend.
Trian went on to say that it thinks Wendy’s is in a good position to give shareholders a lot of value in the long run.
Wendy’s stock is up 3.4% as of this writing.
In a note to clients, Evercore ISI stated that it is “forecasting upside to Wendy’s 4Q and 1Q SSS and EBITDA.” “See its stock upside as more limited at $23 today,” they add, however.
