Bernstein Maintains Market Perform Rating on Wendy’s (WEN), Cites Strategic Shift Under Project Fresh

Core Insights - The Wendy's Company has experienced a significant share price decline of nearly 45% since the beginning of 2025, positioning it among the 10 Best Beaten Down Dividend Stocks to buy currently [1] - Bernstein has maintained a Market Perform rating and a price target of $12.00 for Wendy's, following the introduction of its new strategic initiative, Project Fresh [2] Strategic Initiative - Project Fresh aims to revitalize the Wendy's brand, improve system efficiency, enhance operations, and optimize capital allocation, shifting focus from aggressive unit expansion to increasing average unit volumes and strengthening franchise profitability [3] - The board is in the process of selecting a new CEO, with an appointment expected by the end of 2025, aligning with the goals of Project Fresh to ensure long-term sustainability [4] Financial Performance and Projections - The initiative is anticipated to lead to reduced near-term projections for same-store sales and unit growth, allowing franchisees to opt out of breakfast offerings and increasing investments in training, equipment, and technology [5] - Wendy's cut its dividend by 44% in May, raising concerns among income-focused investors, but has maintained regular dividends since 2003, currently offering a quarterly dividend of $0.14 per share with a dividend yield of 6.31% as of October 16 [6]