Wendy's stock has declined 65% over five years, pushing its dividend yield to 7.1%, but the payout may be at risk. In the first quarter, net income fell 42% to $22.7 million, with earnings per share of $0.12 falling short of the $0.14 quarterly dividend. The company is also pursuing a turnaround that includes opening up to 1,000 restaurants in China, which could strain cash flow. Last year, Wendy's already cut its dividend from $0.25 per share, and another reduction may be coming if financials do not improve.
The Wendy’s CoNet income fell 42% and EPS missed the dividend, signaling financial weakness and potential dividend cut.