8.415 USD
+0.03 (+0.42%)
WEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. WEN has an excellent profitability rating, but there are concerns on its financial health. WEN is cheap, but on the other hand it scores bad on growth. WEN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year WEN was profitable.
In the past year WEN had a positive cash flow from operations.
WEN had positive earnings in each of the past 5 years.
WEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WEN (3.74%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 170.42%, WEN belongs to the top of the industry, outperforming 98.50% of the companies in the same industry.
WEN has a Return On Invested Capital of 6.67%. This is comparable to the rest of the industry: WEN outperforms 57.89% of its industry peers.
WEN had an Average Return On Invested Capital over the past 3 years of 5.43%. This is below the industry average of 10.40%.
The 3 year average ROIC (5.43%) for WEN is below the current ROIC(6.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 170.42% | ||
| ROIC | 6.67% |
ROA(3y)3.68%
ROA(5y)3.46%
ROE(3y)59.67%
ROE(5y)49.27%
ROIC(3y)5.43%
ROIC(5y)5.17%
1.3 Margins
WEN has a Profit Margin of 8.43%. This is in the better half of the industry: WEN outperforms 68.42% of its industry peers.
WEN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 17.49%, WEN is doing good in the industry, outperforming 75.94% of the companies in the same industry.
WEN's Operating Margin has been stable in the last couple of years.
WEN has a Gross Margin of 62.41%. This is in the better half of the industry: WEN outperforms 77.44% of its industry peers.
In the last couple of years the Gross Margin of WEN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.49% | ||
| PM (TTM) | 8.43% | ||
| GM | 62.41% |
OM growth 3Y-1.47%
OM growth 5Y0.74%
PM growth 3Y-6.44%
PM growth 5Y1.55%
GM growth 3Y-1.04%
GM growth 5Y0.27%
2. Health
2.1 Basic Checks
WEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for WEN has been reduced compared to 1 year ago.
Compared to 5 years ago, WEN has less shares outstanding
WEN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.98, we must say that WEN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.98, WEN is not doing good in the industry: 64.66% of the companies in the same industry are doing better.
The Debt to FCF ratio of WEN is 14.24, which is on the high side as it means it would take WEN, 14.24 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 14.24, WEN perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
A Debt/Equity ratio of 26.89 is on the high side and indicates that WEN has dependencies on debt financing.
WEN's Debt to Equity ratio of 26.89 is on the low side compared to the rest of the industry. WEN is outperformed by 69.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.89 | ||
| Debt/FCF | 14.24 | ||
| Altman-Z | 0.98 |
ROIC/WACC0.97
WACC6.88%
2.3 Liquidity
A Current Ratio of 0.81 indicates that WEN may have some problems paying its short term obligations.
With a Current ratio value of 0.81, WEN perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
WEN has a Quick Ratio of 0.81. This is a bad value and indicates that WEN is not financially healthy enough and could expect problems in meeting its short term obligations.
WEN's Quick ratio of 0.80 is in line compared to the rest of the industry. WEN outperforms 45.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.08% over the past year.
WEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.13% yearly.
The Revenue has decreased by -0.21% in the past year.
The Revenue has been growing slightly by 5.62% on average over the past years.
EPS 1Y (TTM)2.08%
EPS 3Y6.84%
EPS 5Y11.13%
EPS Q2Q%-4%
Revenue 1Y (TTM)-0.21%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-3.04%
3.2 Future
Based on estimates for the next years, WEN will show a small growth in Earnings Per Share. The EPS will grow by 5.27% on average per year.
The Revenue is expected to grow by 2.15% on average over the next years.
EPS Next Y-11.81%
EPS Next 2Y-5.37%
EPS Next 3Y-1.19%
EPS Next 5Y5.27%
Revenue Next Year-2.84%
Revenue Next 2Y0.07%
Revenue Next 3Y0.54%
Revenue Next 5Y2.15%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.59 indicates a reasonable valuation of WEN.
Compared to the rest of the industry, the Price/Earnings ratio of WEN indicates a rather cheap valuation: WEN is cheaper than 93.98% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WEN to the average of the S&P500 Index (26.39), we can say WEN is valued rather cheaply.
WEN is valuated reasonably with a Price/Forward Earnings ratio of 9.40.
WEN's Price/Forward Earnings ratio is rather cheap when compared to the industry. WEN is cheaper than 90.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WEN to the average of the S&P500 Index (23.84), we can say WEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 9.4 |
4.2 Price Multiples
75.94% of the companies in the same industry are more expensive than WEN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WEN is valued cheaply inside the industry as 96.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.74 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
WEN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-5.37%
EPS Next 3Y-1.19%
5. Dividend
5.1 Amount
WEN has a Yearly Dividend Yield of 6.56%, which is a nice return.
Compared to an average industry Dividend Yield of 1.54, WEN pays a better dividend. On top of this WEN pays more dividend than 99.25% of the companies listed in the same industry.
WEN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.56% |
5.2 History
On average, the dividend of WEN grows each year by 32.37%, which is quite nice.
WEN has paid a dividend for at least 10 years, which is a reliable track record.
WEN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)32.37%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
82.75% of the earnings are spent on dividend by WEN. This is not a sustainable payout ratio.
The dividend of WEN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP82.75%
EPS Next 2Y-5.37%
EPS Next 3Y-1.19%
NASDAQ:WEN (12/22/2025, 12:54:09 PM)
8.415
+0.03 (+0.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners91.11%
Inst Owner Change-7.33%
Ins Owners8.88%
Ins Owner Change0.21%
Market Cap1.60B
Revenue(TTM)2.21B
Net Income(TTM)186.09M
Analysts56.67
Price Target10.09 (19.9%)
Short Float %16.71%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.56% |
Yearly Dividend1
Dividend Growth(5Y)32.37%
DP82.75%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.95%
Min EPS beat(2)12.55%
Max EPS beat(2)21.35%
EPS beat(4)3
Avg EPS beat(4)8.99%
Min EPS beat(4)-0.22%
Max EPS beat(4)21.35%
EPS beat(8)4
Avg EPS beat(8)3.46%
EPS beat(12)8
Avg EPS beat(12)3.73%
EPS beat(16)11
Avg EPS beat(16)3.25%
Revenue beat(2)1
Avg Revenue beat(2)0.62%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)1.8%
Revenue beat(4)2
Avg Revenue beat(4)0.19%
Min Revenue beat(4)-1.35%
Max Revenue beat(4)1.8%
Revenue beat(8)3
Avg Revenue beat(8)-0.68%
Revenue beat(12)4
Avg Revenue beat(12)-0.8%
Revenue beat(16)5
Avg Revenue beat(16)-0.87%
PT rev (1m)-8.38%
PT rev (3m)-13.42%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-18.9%
EPS NY rev (1m)2.05%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 9.4 | ||
| P/S | 0.73 | ||
| P/FCF | 6.74 | ||
| P/OCF | 4.66 | ||
| P/B | 14.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.55 |
EPS(TTM)0.98
EY11.65%
EPS(NY)0.9
Fwd EY10.64%
FCF(TTM)1.25
FCFY14.85%
OCF(TTM)1.81
OCFY21.47%
SpS11.6
BVpS0.57
TBVpS-9.68
PEG (NY)N/A
PEG (5Y)0.77
Graham Number3.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 170.42% | ||
| ROCE | 9.23% | ||
| ROIC | 6.67% | ||
| ROICexc | 7.17% | ||
| ROICexgc | 14.39% | ||
| OM | 17.49% | ||
| PM (TTM) | 8.43% | ||
| GM | 62.41% | ||
| FCFM | 10.77% |
ROA(3y)3.68%
ROA(5y)3.46%
ROE(3y)59.67%
ROE(5y)49.27%
ROIC(3y)5.43%
ROIC(5y)5.17%
ROICexc(3y)6.13%
ROICexc(5y)5.72%
ROICexgc(3y)11.48%
ROICexgc(5y)10.67%
ROCE(3y)7.51%
ROCE(5y)7.16%
ROICexgc growth 3Y6.48%
ROICexgc growth 5Y7.52%
ROICexc growth 3Y6.19%
ROICexc growth 5Y7.2%
OM growth 3Y-1.47%
OM growth 5Y0.74%
PM growth 3Y-6.44%
PM growth 5Y1.55%
GM growth 3Y-1.04%
GM growth 5Y0.27%
F-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.89 | ||
| Debt/FCF | 14.24 | ||
| Debt/EBITDA | 5.35 | ||
| Cap/Depr | 65.2% | ||
| Cap/Sales | 4.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.65% | ||
| Profit Quality | 127.8% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 0.98 |
F-Score6
WACC6.88%
ROIC/WACC0.97
Cap/Depr(3y)59.99%
Cap/Depr(5y)58.81%
Cap/Sales(3y)4.06%
Cap/Sales(5y)4.05%
Profit Quality(3y)119.97%
Profit Quality(5y)135.28%
High Growth Momentum
Growth
EPS 1Y (TTM)2.08%
EPS 3Y6.84%
EPS 5Y11.13%
EPS Q2Q%-4%
EPS Next Y-11.81%
EPS Next 2Y-5.37%
EPS Next 3Y-1.19%
EPS Next 5Y5.27%
Revenue 1Y (TTM)-0.21%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-3.04%
Revenue Next Year-2.84%
Revenue Next 2Y0.07%
Revenue Next 3Y0.54%
Revenue Next 5Y2.15%
EBIT growth 1Y7%
EBIT growth 3Y4.25%
EBIT growth 5Y6.41%
EBIT Next Year38.87%
EBIT Next 3Y12.49%
EBIT Next 5Y9.99%
FCF growth 1Y-6.95%
FCF growth 3Y-0.86%
FCF growth 5Y4.01%
OCF growth 1Y-0.84%
OCF growth 3Y0.91%
OCF growth 5Y4.22%
WENDY'S CO/THE / WEN FAQ
What is the fundamental rating for WEN stock?
ChartMill assigns a fundamental rating of 5 / 10 to WEN.
What is the valuation status of WENDY'S CO/THE (WEN) stock?
ChartMill assigns a valuation rating of 7 / 10 to WENDY'S CO/THE (WEN). This can be considered as Undervalued.
Can you provide the profitability details for WENDY'S CO/THE?
WENDY'S CO/THE (WEN) has a profitability rating of 7 / 10.
What is the valuation of WENDY'S CO/THE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WENDY'S CO/THE (WEN) is 8.59 and the Price/Book (PB) ratio is 14.67.
Can you provide the financial health for WEN stock?
The financial health rating of WENDY'S CO/THE (WEN) is 2 / 10.