Wendy’s (WEN) Stock Falls After Security Breach Update

Wendy’s (WEN) gave an update today on financial breaches at various restaurant locations earlier this year.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Wendy's (WEN) - Get Report  are down 1.14% to $9.52 in midday trade after the company announced that it had learned more about recent "malicious cyber activity" at various locations in June.

The Dublin, OH-based fast food restaurant chain reported unusual payment card activity in February and June this year.

Today the company announced the specific locations affected by the malware attacks.

The criminal cyberattacks were caused by service providers' remote access credentials being compromised, Wendy's said in a statement. Various franchises' point-of-sales systems were breached.

Credit card information was shared in the attacks, but customers who have reported suspicious activity in a "timely manner" will not be held responsible for the charges.

"We are committed to protecting our customers and keeping them informed," said Todd Penegor, Wendy's CEO. He added that the company has conducted a "rigorous" investigation and that it will apply what it has learned to strengthen data security measures.

Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B.

The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, expanding profit margins, notable return on equity and impressive record of earnings per share growth. TheStreet Ratings feels its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: WEN

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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