7.79 USD
+0.07 (+0.91%)
At close: Jan 30, 2026
7.8 USD
+0.01 (+0.13%)
Pre-Market: 2/2/2026, 4:00:59 AM
Taking everything into account, WEN scores 5 out of 10 in our fundamental rating. WEN was compared to 132 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 has a bad growth rate and is valued cheaply. Finally 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.
- In the past 5 years WEN always reported a positive cash flow from operatings.
1.2 Ratios
- WEN's Return On Assets of 3.74% is in line compared to the rest of the industry. WEN outperforms 59.85% of its industry peers.
- WEN has a Return On Equity of 170.42%. This is amongst the best in the industry. WEN outperforms 99.24% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.67%, WEN is in line with its industry, outperforming 59.09% 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 10.38%.
- 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
- With a decent Profit Margin value of 8.43%, WEN is doing good in 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 Operating Margin of 17.49%. This is in the better half of the industry: WEN outperforms 75.76% of its industry peers.
- WEN's Operating Margin has been stable in the last couple of years.
- With a decent Gross Margin value of 62.41%, WEN is doing good in 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
- WEN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- WEN has less shares outstanding than it did 1 year ago.
- WEN has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for WEN is higher compared to a year ago.
2.2 Solvency
- WEN has an Altman-Z score of 0.97. This is a bad value and indicates that WEN is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.97, WEN is not doing good in the industry: 62.88% of the companies in the same industry are doing better.
- 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.
- The Debt to FCF ratio of WEN (14.24) is comparable to the rest of the industry.
- WEN has a Debt/Equity ratio of 26.89. This is a high value indicating a heavy dependency on external financing.
- WEN has a Debt to Equity ratio of 26.89. This is in the lower half of the industry: WEN underperforms 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
WACC6.6%
2.3 Liquidity
- A Current Ratio of 0.81 indicates that WEN may have some problems paying 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 comparable to the rest of the industry.
| 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%.
- Measured over the past years, WEN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.13% on average per year.
- The Revenue has decreased by -0.21% in the past year.
- Measured over the past years, WEN shows a small growth in Revenue. The Revenue has been growing by 5.62% on average per year.
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.
- Based on estimates for the next years, WEN will show a small growth in Revenue. The Revenue will grow by 2.15% on average per year.
EPS Next Y-11.72%
EPS Next 2Y-6.34%
EPS Next 3Y-2.48%
EPS Next 5Y5.27%
Revenue Next Year-2.79%
Revenue Next 2Y0.04%
Revenue Next 3Y0.56%
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
- WEN is valuated cheaply with a Price/Earnings ratio of 7.95.
- WEN's Price/Earnings ratio is rather cheap when compared to the industry. WEN is cheaper than 95.45% of the companies in the same industry.
- WEN is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 8.88 indicates a reasonable valuation of WEN.
- Based on the Price/Forward Earnings ratio, WEN is valued cheaper than 91.67% of the companies in the same industry.
- WEN is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.95 | ||
| Fwd PE | 8.88 |
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.
- Based on the Price/Free Cash Flow ratio, WEN is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.23 | ||
| EV/EBITDA | 8.34 |
4.3 Compensation for Growth
- The decent profitability rating of WEN may justify a higher PE ratio.
- WEN's earnings are expected to decrease with -2.48% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.71
EPS Next 2Y-6.34%
EPS Next 3Y-2.48%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.05%, WEN is a good candidate for dividend investing.
- WEN's Dividend Yield is rather good when compared to the industry average which is at 1.25. WEN pays more dividend than 96.97% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, WEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.05% |
5.2 History
- The dividend of WEN is nicely growing with an annual growth rate of 32.37%!
- 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-6.34%
EPS Next 3Y-2.48%
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 7.95 and the Price/Book (PB) ratio is 13.58.
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%.