WENDY'S CO/THE (WEN) Fundamental Analysis & Valuation
NASDAQ:WEN • US95058W1009
Current stock price
7.14 USD
+0.21 (+3.03%)
At close:
7.14 USD
0 (0%)
After Hours:
This WEN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. WEN Profitability Analysis
1.1 Basic Checks
- In the past year WEN was profitable.
- In the past year WEN had a positive cash flow from operations.
- 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 has a Return On Assets (3.33%) which is in line with its industry peers.
- WEN has a Return On Equity of 140.63%. This is amongst the best in the industry. WEN outperforms 99.21% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.43%, WEN is in line with its industry, outperforming 50.79% of the companies in the same industry.
- WEN had an Average Return On Invested Capital over the past 3 years of 5.65%. This is below the industry average of 10.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 140.63% | ||
| ROIC | 5.43% |
ROA(3y)3.71%
ROA(5y)3.66%
ROE(3y)93.85%
ROE(5y)73.11%
ROIC(3y)5.65%
ROIC(5y)5.36%
1.3 Margins
- WEN has a better Profit Margin (7.58%) than 67.46% of its industry peers.
- WEN's Profit Margin has improved in the last couple of years.
- WEN's Operating Margin of 15.96% is fine compared to the rest of the industry. WEN outperforms 72.22% of its industry peers.
- WEN's Operating Margin has been stable in the last couple of years.
- WEN has a Gross Margin of 61.18%. This is in the better half of the industry: WEN outperforms 76.19% of its industry peers.
- WEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.96% | ||
| PM (TTM) | 7.58% | ||
| GM | 61.18% |
OM growth 3Y0.18%
OM growth 5Y-0.52%
PM growth 3Y-3.6%
PM growth 5Y2.22%
GM growth 3Y-0.54%
GM growth 5Y-0.53%
2. WEN Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WEN is destroying value.
- WEN has less shares outstanding than it did 1 year ago.
- WEN has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, WEN has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.03, we must say that WEN is in the distress zone and has some risk of bankruptcy.
- WEN has a worse Altman-Z score (1.03) than 64.29% of its industry peers.
- The Debt to FCF ratio of WEN is 14.15, which is on the high side as it means it would take WEN, 14.15 years of fcf income to pay off all of its debts.
- WEN has a Debt to FCF ratio (14.15) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 28.77 is on the high side and indicates that WEN has dependencies on debt financing.
- WEN has a Debt to Equity ratio of 28.77. This is in the lower half of the industry: WEN underperforms 74.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.77 | ||
| Debt/FCF | 14.15 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.87
WACC6.21%
2.3 Liquidity
- A Current Ratio of 1.76 indicates that WEN should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.76, WEN is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
- A Quick Ratio of 1.74 indicates that WEN should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.74, WEN belongs to the top of the industry, outperforming 80.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.74 |
3. WEN Growth Analysis
3.1 Past
- WEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.00%.
- The Earnings Per Share has been growing by 9.32% on average over the past years. This is quite good.
- The Revenue has decreased by -3.10% in the past year.
- The Revenue has been growing slightly by 4.66% on average over the past years.
EPS 1Y (TTM)-11%
EPS 3Y0.76%
EPS 5Y9.32%
EPS Q2Q%-36%
Revenue 1Y (TTM)-3.1%
Revenue growth 3Y1.28%
Revenue growth 5Y4.66%
Sales Q2Q%-5.45%
3.2 Future
- The Earnings Per Share is expected to grow by 1.08% 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 1.81% yearly.
EPS Next Y-33.83%
EPS Next 2Y-13.31%
EPS Next 3Y-5.2%
EPS Next 5Y1.08%
Revenue Next Year1.64%
Revenue Next 2Y1.29%
Revenue Next 3Y1.82%
Revenue Next 5Y1.81%
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. WEN Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.02, which indicates a very decent valuation of WEN.
- Based on the Price/Earnings ratio, WEN is valued cheaply inside the industry as 94.44% of the companies are valued more expensively.
- WEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
- Based on the Price/Forward Earnings ratio of 12.12, the valuation of WEN can be described as correct.
- Based on the Price/Forward Earnings ratio, WEN is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.24, WEN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
- WEN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WEN is cheaper than 73.02% 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 96.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.61 | ||
| EV/EBITDA | 8.67 |
4.3 Compensation for Growth
- The decent profitability rating of WEN may justify a higher PE ratio.
- A cheap valuation may be justified as WEN's earnings are expected to decrease with -5.20% in the coming years.
PEG (NY)N/A
PEG (5Y)0.86
EPS Next 2Y-13.31%
EPS Next 3Y-5.2%
5. WEN Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 8.08%, WEN is a good candidate for dividend investing.
- WEN's Dividend Yield is rather good when compared to the industry average which is at 1.04. WEN pays more dividend than 100.00% of the companies in the same industry.
- WEN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
5.2 History
- The dividend of WEN is nicely growing with an annual growth rate of 14.01%!
- WEN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)14.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 78.50% of the earnings are spent on dividend by WEN. This is not a sustainable payout ratio.
- WEN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP78.5%
EPS Next 2Y-13.31%
EPS Next 3Y-5.2%
WEN Fundamentals: All Metrics, Ratios and Statistics
7.14
+0.21 (+3.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-13 2026-02-13/bmo
Earnings (Next)05-08 2026-05-08/bmo
Inst Owners92.99%
Inst Owner Change-0.37%
Ins Owners8.97%
Ins Owner Change0.23%
Market Cap1.36B
Revenue(TTM)2.18B
Net Income(TTM)165.07M
Analysts55.43
Price Target8.18 (14.57%)
Short Float %21.84%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
Yearly Dividend0.66
Dividend Growth(5Y)14.01%
DP78.5%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-02 2026-03-02 (0.14)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.67%
Min EPS beat(2)9.98%
Max EPS beat(2)21.35%
EPS beat(4)3
Avg EPS beat(4)10.91%
Min EPS beat(4)-0.22%
Max EPS beat(4)21.35%
EPS beat(8)5
Avg EPS beat(8)6.04%
EPS beat(12)8
Avg EPS beat(12)3.97%
EPS beat(16)11
Avg EPS beat(16)3.55%
Revenue beat(2)2
Avg Revenue beat(2)1.05%
Min Revenue beat(2)0.3%
Max Revenue beat(2)1.8%
Revenue beat(4)2
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-1.35%
Max Revenue beat(4)1.8%
Revenue beat(8)4
Avg Revenue beat(8)-0.38%
Revenue beat(12)5
Avg Revenue beat(12)-0.73%
Revenue beat(16)5
Avg Revenue beat(16)-0.97%
PT rev (1m)-2.2%
PT rev (3m)-16.87%
EPS NQ rev (1m)-2.66%
EPS NQ rev (3m)-45.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-32.87%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-3.78%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 12.12 | ||
| P/S | 0.62 | ||
| P/FCF | 5.61 | ||
| P/OCF | 3.95 | ||
| P/B | 11.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.67 |
EPS(TTM)0.89
EY12.46%
EPS(NY)0.59
Fwd EY8.25%
FCF(TTM)1.27
FCFY17.84%
OCF(TTM)1.81
OCFY25.33%
SpS11.43
BVpS0.62
TBVpS-9.59
PEG (NY)N/A
PEG (5Y)0.86
Graham Number3.51298 (-50.8%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 140.63% | ||
| ROCE | 7.55% | ||
| ROIC | 5.43% | ||
| ROICexc | 5.81% | ||
| ROICexgc | 10.6% | ||
| OM | 15.96% | ||
| PM (TTM) | 7.58% | ||
| GM | 61.18% | ||
| FCFM | 11.15% |
ROA(3y)3.71%
ROA(5y)3.66%
ROE(3y)93.85%
ROE(5y)73.11%
ROIC(3y)5.65%
ROIC(5y)5.36%
ROICexc(3y)6.22%
ROICexc(5y)5.91%
ROICexgc(3y)11.57%
ROICexgc(5y)11.01%
ROCE(3y)7.85%
ROCE(5y)7.44%
ROICexgc growth 3Y1.23%
ROICexgc growth 5Y3.97%
ROICexc growth 3Y1.94%
ROICexc growth 5Y4.18%
OM growth 3Y0.18%
OM growth 5Y-0.52%
PM growth 3Y-3.6%
PM growth 5Y2.22%
GM growth 3Y-0.54%
GM growth 5Y-0.53%
F-Score4
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.77 | ||
| Debt/FCF | 14.15 | ||
| Debt/EBITDA | 6.52 | ||
| Cap/Depr | 59.65% | ||
| Cap/Sales | 4.68% | ||
| Interest Coverage | 2.38 | ||
| Cash Conversion | 66.47% | ||
| Profit Quality | 146.97% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 1.03 |
F-Score4
WACC6.21%
ROIC/WACC0.87
Cap/Depr(3y)58.88%
Cap/Depr(5y)60.35%
Cap/Sales(3y)4.26%
Cap/Sales(5y)4.19%
Profit Quality(3y)136.2%
Profit Quality(5y)128.1%
High Growth Momentum
Growth
EPS 1Y (TTM)-11%
EPS 3Y0.76%
EPS 5Y9.32%
EPS Q2Q%-36%
EPS Next Y-33.83%
EPS Next 2Y-13.31%
EPS Next 3Y-5.2%
EPS Next 5Y1.08%
Revenue 1Y (TTM)-3.1%
Revenue growth 3Y1.28%
Revenue growth 5Y4.66%
Sales Q2Q%-5.45%
Revenue Next Year1.64%
Revenue Next 2Y1.29%
Revenue Next 3Y1.82%
Revenue Next 5Y1.81%
EBIT growth 1Y-8.02%
EBIT growth 3Y1.47%
EBIT growth 5Y4.11%
EBIT Next Year32.25%
EBIT Next 3Y12.44%
EBIT Next 5Y7.91%
FCF growth 1Y-7.01%
FCF growth 3Y11.64%
FCF growth 5Y2.41%
OCF growth 1Y-3.03%
OCF growth 3Y9.85%
OCF growth 5Y3.91%
WENDY'S CO/THE / WEN Fundamental Analysis FAQ
What is the fundamental rating for WEN stock?
ChartMill assigns a fundamental rating of 5 / 10 to WEN.
Can you provide the valuation status for WENDY'S CO/THE?
ChartMill assigns a valuation rating of 6 / 10 to WENDY'S CO/THE (WEN). This can be considered as Fairly Valued.
What is the profitability of WEN stock?
WENDY'S CO/THE (WEN) has a profitability rating of 6 / 10.
Can you provide the financial health for WEN stock?
The financial health rating of WENDY'S CO/THE (WEN) is 3 / 10.
How sustainable is the dividend of WENDY'S CO/THE (WEN) stock?
The dividend rating of WENDY'S CO/THE (WEN) is 6 / 10 and the dividend payout ratio is 78.5%.