Analysts Cautious on The Wendy’s Company (WEN) Amid Cost and Margin Pressures

The Wendy’s Company (NASDAQ:WEN) is included in our list of the best restaurant stocks to buy now.

Analysts Cautious on The Wendy’s Company (WEN) Amid Cost and Margin Pressures

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The Wendy’s Company (NASDAQ:WEN) saw analyst pressure rising at the end of December, with RBC Capital reducing its price target from $9.00 to $8.50 on December 22, 2025, while reiterating a “Sector Perform” rating. The firm’s reduction in its price target reflects cost and margin risks heading into 2026, believing that consensus G&A expense assumptions appear understated. Acknowledging that 2025 G&A declines were due to lower incentive compensation, the investment firm projects that fiscal 2026 G&A could rise to $285-290 million. This projection is well above the Street estimate of $264.6 million.

Furthermore, RBC Capital projects potential downside to restaurant-level margins (RLMs), driven by pressure from U.S. same-store sales growth of 0%-1% alongside heightened beef inflation. The company-owned restaurants contribute roughly 37% of operating profit. Thus, the investment firm believes that a reduction in RLMs to 12.7% from 13.5% could result in a 3.5% EPS headwind. Accordingly, the investment firm lowered its 2026 EPS forecast by 13.0% to $0.68 and its 2027 EPS forecast by 11.8% to $0.79.

The month also witnessed a bearish outlook from analysts. On December 17, 2025, Goldman Sachs reduced its price target on The Wendy’s Company (NASDAQ:WEN) from $9 to $8, reiterating a “Sell” rating. Two weeks earlier, JPMorgan also reduced its price target from $12 to $9 and downgraded the stock to “Neutral.” The firm’s cautious stance reflects weak U.S. system economics, declining average unit volumes, and elevated capital requirements tied to developments, remodels, and technology investments.

The Wendy’s Company (NASDAQ:WEN), a U.S.-based fast-food operator and franchisor with over 7,000 restaurants globally, focuses on burgers, chicken, and quick-service dining.

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