© Reuters Wendy’s (WEN) stock rises after announcing share repurchase program, increased dividend
By Sam Boughedda
Wendy’s (NASDAQ:) shares opened lower before climbing Friday following various news headlines for the company.
Wendy’s released its fourth quarter preliminary results revealing total revenue hit $536.5 million, up 13.4% year over year. It also announced a $0.25 quarterly dividend and a new $500 million share repurchase program.
Meanwhile, Trian Fund Management, which is run by activist investor Nelson Peltz, said it would not pursue a takeover of Wendy’s, while the stock was also downgraded to In Line by Evercore ISI and added to the firm’s Tactical Underperform list.
Last year, Trian said it was exploring a takeover of the fast food restaurant company, but the hedge fund said in a filing that Wendy’s returning additional capital to shareholders via its announced repurchase program and its increased cash dividend “was the appropriate path to enhance shareholder value at this time.”
Trian added that it believes Wendy’s is well-positioned to provide significant long-term value for shareholders.
At the time of writing, Wendy’s shares are up 3.4%.
Evercore ISI said in its note to clients that they are “forecasting upside to Wendy’s 4Q and 1Q SSS and EBITDA.” However, they also “see its stock upside as more limited at $23 today.”
Be the first to comment