JPMorgan upgraded Wendy’s (NASDAQ:WEN) from Neutral to Overweight, assigning a $15 price target, as the firm sees a value-driven opportunity in the fast-food chain’s current valuation alongside solid free cash flow and international growth prospects.
Analysts highlighted the stock’s attractive free cash flow yield—projected at 6–7% between fiscal 2026 and 2028—with the potential to exceed 8.5% excluding capital required for franchise expansion. The firm believes near-term same-store sales expectations are now more achievable and that medium- to long-term development, particularly in untapped international markets, offers upside.
JPMorgan also revisited Wendy’s capital allocation structure, identifying a healthy balance between discretionary and essential spending that supports a robust free cash flow growth outlook through fiscal 2028.
The stock offers an approximately 5% dividend yield and around 12% upside to the current share price, translating into a potential total shareholder return in the mid-to-high teens annually. The firm’s optimism is further underpinned by Wendy’s resilient earnings profile and capital strategy focused on sustaining and enhancing its largely franchised system, which comprises about 95% of its global footprint.
