8.32 USD
-0.22 (-2.58%)
8.3601 USD
+0.04 (+0.48%)
We assign a fundamental rating of 5 out of 10 to WEN. WEN was compared to 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 valued quite cheap, but it does not seem to be growing. Finally 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
- The Return On Assets of WEN (3.74%) is comparable to the rest of the industry.
- With an excellent Return On Equity value of 170.42%, WEN belongs to the best of the industry, outperforming 98.50% of the companies in the same industry.
- With a Return On Invested Capital value of 6.67%, WEN perfoms like the industry average, outperforming 58.65% 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 10.34%.
- 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 69.92% of the companies in the same industry.
- WEN's Profit Margin has improved in the last couple of years.
- The Operating Margin of WEN (17.49%) is better than 75.94% of its industry peers.
- WEN's Operating Margin has been stable in the last couple of years.
- WEN has a better Gross Margin (62.41%) than 78.20% 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
- WEN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for WEN has been reduced compared to 1 year ago.
- WEN has less shares outstanding than it did 5 years ago.
- 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.
- WEN has a worse Altman-Z score (0.98) than 65.41% 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 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.
- 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 | 0.98 |
ROIC/WACC1
WACC6.67%
2.3 Liquidity
- A Current Ratio of 0.81 indicates that WEN may have some problems paying its short term obligations.
- The Current ratio of WEN (0.81) is comparable to the rest of the 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 45.86% 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.
- 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.
- 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-11.76%
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
EPS Next 5Y5.27%
Revenue Next Year-2.79%
Revenue Next 2Y0.07%
Revenue Next 3Y0.62%
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.
- 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
- Based on the Price/Earnings ratio of 8.49, the valuation of WEN can be described as reasonable.
- 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.
- The average S&P500 Price/Earnings ratio is at 27.47. WEN is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 9.41, the valuation of WEN can be described as reasonable.
- Based on the Price/Forward Earnings ratio, WEN is valued cheaper than 90.23% of the companies in the same industry.
- WEN is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.49 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WEN is valued a bit cheaper than the industry average as 75.94% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, WEN is valued cheaply inside the industry as 97.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.66 | ||
| EV/EBITDA | 8.53 |
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-5.97%
EPS Next 3Y-1.96%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.56%, WEN is a good candidate for dividend investing.
- WEN's Dividend Yield is rather good when compared to the industry average which is at 4.61. WEN pays more dividend than 97.74% of the companies 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
- 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-5.97%
EPS Next 3Y-1.96%
8.32
-0.22 (-2.58%)
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/amc
Inst Owners90.93%
Inst Owner Change0.13%
Ins Owners8.88%
Ins Owner Change0.22%
Market Cap1.58B
Revenue(TTM)2.21B
Net Income(TTM)186.09M
Analysts56.11
Price Target9.85 (18.39%)
Short Float %15.41%
Short Ratio3.78
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-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)-2.42%
PT rev (3m)-13.56%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)-18.78%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.49 | ||
| Fwd PE | 9.41 | ||
| P/S | 0.72 | ||
| P/FCF | 6.66 | ||
| P/OCF | 4.61 | ||
| P/B | 14.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.53 |
EPS(TTM)0.98
EY11.78%
EPS(NY)0.88
Fwd EY10.63%
FCF(TTM)1.25
FCFY15.02%
OCF(TTM)1.81
OCFY21.72%
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
WACC6.67%
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-2.79%
Revenue Next 2Y0.07%
Revenue Next 3Y0.62%
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 8.49 and the Price/Book (PB) ratio is 14.5.
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%.