8.02 USD
-0.02 (-0.25%)
At close: Feb 6, 2026
8.04 USD
+0.02 (+0.25%)
After Hours: 2/6/2026, 8:11:25 PM
We assign a fundamental rating of 5 out of 10 to WEN. WEN was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. WEN scores excellent on profitability, 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
- WEN had positive earnings in the past year.
- In the past year WEN had a positive cash flow from operations.
- WEN had positive earnings in each of the past 5 years.
- In the past 5 years WEN always reported a positive cash flow from operatings.
1.2 Ratios
- WEN has a Return On Assets (3.74%) which is in line with its industry peers.
- WEN has a better Return On Equity (170.42%) than 99.24% of its industry peers.
- WEN has a Return On Invested Capital (6.67%) which is comparable to the rest of the industry.
- WEN had an Average Return On Invested Capital over the past 3 years of 5.43%. This is below the industry average of 10.33%.
- 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
- Looking at the Profit Margin, with a value of 8.43%, WEN is in the better half of the industry, outperforming 69.70% 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.
- Looking at the Gross Margin, with a value of 62.41%, WEN is in the better half of the industry, outperforming 78.03% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WEN is creating some value.
- Compared to 1 year ago, WEN has less shares outstanding
- 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 0.97, we must say that WEN is in the distress zone and has some risk of bankruptcy.
- WEN has a worse Altman-Z score (0.97) than 62.88% 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.
- WEN has a Debt/Equity ratio of 26.89. This is a high value indicating a heavy dependency on external 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 70.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.89 | ||
| Debt/FCF | 14.24 | ||
| Altman-Z | 0.97 |
ROIC/WACC1.01
WACC6.58%
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's Current ratio of 0.81 is in line compared to the rest of the industry. WEN outperforms 42.42% of its industry peers.
- A Quick Ratio of 0.80 indicates that WEN may have some problems paying its short term obligations.
- WEN's Quick ratio of 0.80 is in line compared to the rest of the industry. WEN outperforms 44.70% 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.
- 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
- The Earnings Per Share is expected to grow by 5.27% on average over the next years.
- 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-11.95%
EPS Next 2Y-6.66%
EPS Next 3Y-2.61%
EPS Next 5Y5.27%
Revenue Next Year-2.93%
Revenue Next 2Y-0.11%
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
- The Price/Earnings ratio is 8.18, which indicates a very decent 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 94.70% of the companies listed in the same industry.
- WEN is valuated cheaply when we compare the Price/Earnings ratio to 27.92, which is the current average of the S&P500 Index.
- WEN is valuated reasonably with a Price/Forward Earnings ratio of 9.21.
- Based on the Price/Forward Earnings ratio, WEN is valued cheaper than 90.91% of the companies in the same industry.
- WEN is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 9.21 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WEN is valued a bit cheaper than the industry average as 78.03% of the companies are valued more expensively.
- WEN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WEN is cheaper than 97.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.42 | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
- WEN has a very decent profitability rating, which may justify a higher PE ratio.
- WEN's earnings are expected to decrease with -2.61% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.74
EPS Next 2Y-6.66%
EPS Next 3Y-2.61%
5. Dividend
5.1 Amount
- WEN has a Yearly Dividend Yield of 7.05%, which is a nice return.
- WEN's Dividend Yield is rather good when compared to the industry average which is at 1.24. WEN pays more dividend than 97.73% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, WEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.05% |
5.2 History
- On average, the dividend of WEN grows each year by 32.37%, which is quite nice.
- WEN has been paying a dividend for at least 10 years, so it has 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-6.66%
EPS Next 3Y-2.61%
8.02
-0.02 (-0.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-07 2025-11-07/bmo
Earnings (Next)02-13 2026-02-13/bmo
Inst Owners90.93%
Inst Owner Change-1.5%
Ins Owners8.88%
Ins Owner Change0.17%
Market Cap1.53B
Revenue(TTM)2.21B
Net Income(TTM)186.09M
Analysts56.11
Price Target9.76 (21.7%)
Short Float %17.12%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.05% |
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)-2.87%
PT rev (3m)-11.4%
EPS NQ rev (1m)-1.26%
EPS NQ rev (3m)-16.84%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)1.9%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)1.05%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 9.21 | ||
| P/S | 0.69 | ||
| P/FCF | 6.42 | ||
| P/OCF | 4.44 | ||
| P/B | 13.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.42 |
EPS(TTM)0.98
EY12.22%
EPS(NY)0.87
Fwd EY10.86%
FCF(TTM)1.25
FCFY15.58%
OCF(TTM)1.81
OCFY22.53%
SpS11.6
BVpS0.57
TBVpS-9.68
PEG (NY)N/A
PEG (5Y)0.74
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 | 0.97 |
F-Score6
WACC6.58%
ROIC/WACC1.01
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-11.95%
EPS Next 2Y-6.66%
EPS Next 3Y-2.61%
EPS Next 5Y5.27%
Revenue 1Y (TTM)-0.21%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-3.04%
Revenue Next Year-2.93%
Revenue Next 2Y-0.11%
Revenue Next 3Y0.54%
Revenue Next 5Y2.15%
EBIT growth 1Y7%
EBIT growth 3Y4.25%
EBIT growth 5Y6.41%
EBIT Next Year39.05%
EBIT Next 3Y12.25%
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 8.18 and the Price/Book (PB) ratio is 13.98.
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%.