Wendy's: Where's The Fair Value After The Dividend Cut?
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Wendy's is reducing its quarterly dividend from $0.25 to $0.14 per share to focus on deleveraging and investing in U.S. operations. The company plans $200 million in buybacks and aims to reduce long-term debt. FY 2025 guidance includes 2%-3% global sales growth, adjusted EBITDA of $550-$560 million, and free cash flow of $275-$285 million.
February 27, 2025 | 1:00 pm
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Wendy's is cutting its dividend to focus on reducing debt and investing in U.S. operations. The company plans $200 million in buybacks and aims for improved financial health. FY 2025 guidance includes modest sales growth and strong EBITDA and cash flow targets.
The dividend cut may initially be seen negatively by income-focused investors, but the focus on debt reduction and buybacks could improve long-term financial health. The FY 2025 guidance suggests stable growth, which may offset short-term negative sentiment.
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