8.31 USD
+0.08 (+0.97%)
WEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. WEN has an excellent profitability rating, but there are concerns on its financial health. WEN has a bad growth rate and is valued cheaply. 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.
Each year in the past 5 years WEN has been profitable.
WEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.74%, WEN is in line with its industry, outperforming 56.82% of the companies in the same industry.
WEN has a Return On Equity of 170.42%. This is amongst the best in the industry. WEN outperforms 98.48% of its industry peers.
With a Return On Invested Capital value of 6.67%, WEN perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WEN is below the industry average of 10.42%.
The last Return On Invested Capital (6.67%) for WEN is above the 3 year average (5.43%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 8.43%, WEN is doing good in the industry, outperforming 68.18% of the companies in the same industry.
WEN's Profit Margin has improved in the last couple of years.
WEN has a better Operating Margin (17.49%) than 75.76% of its industry peers.
WEN's Operating Margin has been stable in the last couple of years.
The Gross Margin of WEN (62.41%) is better than 77.27% of its industry peers.
WEN's Gross Margin has been stable in the last couple of years.
| 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 below the Cost of Capital (WACC), so WEN is destroying value.
The number of shares outstanding for WEN has been reduced compared to 1 year ago.
The number of shares outstanding for WEN has been reduced compared to 5 years ago.
The debt/assets ratio for WEN is higher compared to a year ago.
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.
The Altman-Z score of WEN (0.98) is worse than 65.15% of its industry peers.
WEN has a debt to FCF ratio of 14.24. This is a negative value and a sign of low solvency as WEN would need 14.24 years to pay back of all of its debts.
WEN has a Debt to FCF ratio (14.24) which is in line with its industry peers.
A Debt/Equity ratio of 26.89 is on the high side and indicates that WEN has dependencies on debt financing.
WEN has a worse Debt to Equity ratio (26.89) than 70.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.89 | ||
| Debt/FCF | 14.24 | ||
| Altman-Z | 0.98 |
ROIC/WACC0.97
WACC6.9%
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 (0.81) which is in line with 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
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.
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
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.
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
With a Price/Earnings ratio of 8.48, the valuation of WEN can be described as very reasonable.
WEN's Price/Earnings ratio is rather cheap when compared to the industry. WEN is cheaper than 94.70% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.55, WEN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.28, the valuation of WEN can be described as reasonable.
Based on the Price/Forward Earnings ratio, WEN is valued cheaper than 90.15% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, WEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 9.28 |
4.2 Price Multiples
WEN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WEN is cheaper than 75.76% of the companies in the same industry.
WEN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WEN is cheaper than 96.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.65 | ||
| EV/EBITDA | 8.49 |
4.3 Compensation for Growth
The decent profitability rating of WEN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.76
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 1.48, WEN pays a better dividend. On top of this WEN pays more dividend than 99.24% 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
WEN pays out 82.75% of its income as dividend. This is not a sustainable payout ratio.
WEN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP82.75%
EPS Next 2Y-5.37%
EPS Next 3Y-1.19%
NASDAQ:WEN (12/16/2025, 10:10:03 AM)
8.31
+0.08 (+0.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners91.11%
Inst Owner Change-7.31%
Ins Owners8.88%
Ins Owner Change0.21%
Market Cap1.58B
Revenue(TTM)2.21B
Net Income(TTM)186.09M
Analysts56.67
Price Target10.09 (21.42%)
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)-15.36%
EPS NQ rev (3m)-18.9%
EPS NY rev (1m)2.05%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)1.75%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 9.28 | ||
| P/S | 0.72 | ||
| P/FCF | 6.65 | ||
| P/OCF | 4.6 | ||
| P/B | 14.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.49 |
EPS(TTM)0.98
EY11.79%
EPS(NY)0.9
Fwd EY10.78%
FCF(TTM)1.25
FCFY15.04%
OCF(TTM)1.81
OCFY21.74%
SpS11.6
BVpS0.57
TBVpS-9.68
PEG (NY)N/A
PEG (5Y)0.76
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
WACC6.9%
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 8.48 and the Price/Book (PB) ratio is 14.49.
Can you provide the financial health for WEN stock?
The financial health rating of WENDY'S CO/THE (WEN) is 2 / 10.