8.54 USD
+0.06 (+0.71%)
8.55 USD
+0.01 (+0.12%)
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. While WEN belongs to the best of the industry regarding profitability, 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.
- WEN had a positive operating cash flow in the past year.
- In the past 5 years WEN has always been profitable.
- In the past 5 years WEN always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 3.74%, WEN perfoms like the industry average, outperforming 59.40% of the companies in the same industry.
- WEN has a better Return On Equity (170.42%) than 98.50% of its industry peers.
- WEN has a Return On Invested Capital of 6.67%. This is comparable to the rest of the industry: WEN outperforms 58.65% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WEN is below the industry average of 10.34%.
- 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 69.92% of its industry peers.
- In the last couple of years the Profit Margin of WEN has grown nicely.
- 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.
- The Gross Margin of WEN (62.41%) is better than 78.20% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WEN is still creating some 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
- The debt/assets ratio for WEN is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.99, we must say that WEN is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.99, WEN is not doing good in the industry: 65.41% 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.
- Looking at the Debt to FCF ratio, with a value of 14.24, WEN is in line with its industry, outperforming 52.63% of the companies in the same industry.
- WEN has a Debt/Equity ratio of 26.89. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 26.89, WEN is doing worse than 69.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.89 | ||
| Debt/FCF | 14.24 | ||
| Altman-Z | 0.99 |
ROIC/WACC1
WACC6.64%
2.3 Liquidity
- WEN has a Current 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 has a Current ratio of 0.81. This is comparable to the rest of the industry: WEN outperforms 43.61% of its industry peers.
- A Quick Ratio of 0.80 indicates that WEN may have some problems paying its short term obligations.
- WEN has a Quick ratio (0.80) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- WEN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.08%.
- WEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.13% yearly.
- WEN shows a decrease in Revenue. In the last year, the revenue decreased by -0.21%.
- 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
- WEN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.27% yearly.
- WEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.15% yearly.
EPS Next Y-11.76%
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
EPS Next 5Y5.27%
Revenue Next Year-2.84%
Revenue Next 2Y0.07%
Revenue Next 3Y0.49%
Revenue Next 5Y2.15%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 8.71 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 94.74% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.54, WEN is valued rather cheaply.
- WEN is valuated reasonably with a Price/Forward Earnings ratio of 9.66.
- 90.23% of the companies in the same industry are more expensive than WEN, based on the Price/Forward Earnings ratio.
- WEN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 9.66 |
4.2 Price Multiples
- WEN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WEN is cheaper than 75.94% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, WEN is valued cheaper than 97.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.84 | ||
| EV/EBITDA | 8.6 |
4.3 Compensation for Growth
- The decent profitability rating of WEN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.68%, WEN is a good candidate for dividend investing.
- WEN's Dividend Yield is rather good when compared to the industry average which is at 6.32. WEN pays more dividend than 97.74% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.92, WEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
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
- WEN pays out 82.75% of its income as dividend. 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-5.97%
EPS Next 3Y-1.96%
8.54
+0.06 (+0.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-07 2025-11-07/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners90.93%
Inst Owner Change0.13%
Ins Owners8.88%
Ins Owner Change0.22%
Market Cap1.63B
Revenue(TTM)2.21B
Net Income(TTM)186.09M
Analysts56.11
Price Target10.04 (17.56%)
Short Float %15.41%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
Yearly Dividend1
Dividend Growth(5Y)32.37%
DP82.75%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
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)-0.44%
PT rev (3m)-11.81%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)-18.23%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 9.66 | ||
| P/S | 0.74 | ||
| P/FCF | 6.84 | ||
| P/OCF | 4.73 | ||
| P/B | 14.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.6 |
EPS(TTM)0.98
EY11.48%
EPS(NY)0.88
Fwd EY10.35%
FCF(TTM)1.25
FCFY14.63%
OCF(TTM)1.81
OCFY21.16%
SpS11.6
BVpS0.57
TBVpS-9.68
PEG (NY)N/A
PEG (5Y)0.78
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 | 0.99 |
F-Score6
WACC6.64%
ROIC/WACC1
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-11.76%
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
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 3Y0.49%
Revenue Next 5Y2.15%
EBIT growth 1Y7%
EBIT growth 3Y4.25%
EBIT growth 5Y6.41%
EBIT Next Year38.87%
EBIT Next 3Y12.3%
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 for WEN stock?
ChartMill assigns a valuation rating of 7 / 10 to WENDY'S CO/THE (WEN). This can be considered as Undervalued.
How profitable is WENDY'S CO/THE (WEN) stock?
WENDY'S CO/THE (WEN) has a profitability rating of 7 / 10.
What are the PE and PB ratios of WENDY'S CO/THE (WEN) stock?
The Price/Earnings (PE) ratio for WENDY'S CO/THE (WEN) is 8.71 and the Price/Book (PB) ratio is 14.89.
How sustainable is the dividend of WENDY'S CO/THE (WEN) stock?
The dividend rating of WENDY'S CO/THE (WEN) is 7 / 10 and the dividend payout ratio is 82.75%.