Wendy's Needs Improved Cash Returns From New US Units To Accelerate Growth, Analyst Says

JPMorgan analyst John Ivankoe gives Wendy’s Co WEN a Neutral rating, lowering the price forecast to $17 from $20.Ivankoe stresses the need for improved cash returns from new U.S. units to accelerate growth, as Wendy’s U.S. units have grown by 1.4% since 2019 but declined by 2.9% since 2014.The analyst notes that despite a dividend cut to 56 cents from $1, the stock still offers an attractive 4% dividend yield, with over $135 million payment in FY25.Capital intensity is rising from $170 million in FY24 to $2 ...