WENDY'S CO/THE (WEN) Fundamental Analysis & Valuation
NASDAQ:WEN • US95058W1009
7.27 USD
-0.15 (-2.02%)
At close: Mar 9, 2026
7.26 USD
-0.01 (-0.14%)
After Hours: 3/9/2026, 8:00:02 PM
This WEN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall WEN gets a fundamental rating of 5 out of 10. We evaluated WEN against 126 industry peers in the Hotels, Restaurants & Leisure industry. While WEN is still in line with the averages on profitability rating, there are concerns on its financial health. WEN is valued correctly, but it does not seem to be growing. WEN also has an excellent dividend rating.
1. WEN Profitability Analysis
1.1 Basic Checks
- WEN had positive earnings in the past year.
- In the past year WEN had a positive cash flow from operations.
- In the past 5 years WEN has always been profitable.
- In the past 5 years WEN always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.33%, WEN is in line with its industry, outperforming 57.94% of the companies in the same industry.
- With an excellent Return On Equity value of 140.63%, WEN belongs to the best of the industry, outperforming 98.41% of the companies in the same industry.
- The Return On Invested Capital of WEN (5.43%) is comparable to the rest of the industry.
- WEN had an Average Return On Invested Capital over the past 3 years of 5.65%. This is below the industry average of 10.49%.
| 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
- The Profit Margin of WEN (7.58%) is better than 67.46% of its industry peers.
- In the last couple of years the Profit Margin of WEN has grown nicely.
- WEN's Operating Margin of 15.96% is fine compared to the rest of the industry. WEN outperforms 70.63% of its industry peers.
- WEN's Operating Margin has been stable in the last couple of years.
- WEN's Gross Margin of 61.18% is fine compared to the rest of the industry. WEN outperforms 76.19% of its industry peers.
- 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 | 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WEN is destroying value.
- Compared to 1 year ago, WEN has less shares outstanding
- Compared to 5 years ago, WEN has less shares outstanding
- WEN has a worse debt/assets ratio than last year.
2.2 Solvency
- WEN has an Altman-Z score of 1.03. This is a bad value and indicates that WEN is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.03, WEN is doing worse than 63.49% of the companies in the same industry.
- WEN has a debt to FCF ratio of 14.15. This is a negative value and a sign of low solvency as WEN would need 14.15 years to pay back of all of its debts.
- WEN has a Debt to FCF ratio (14.15) which is comparable to the rest of the industry.
- WEN has a Debt/Equity ratio of 28.77. This is a high value indicating a heavy dependency on external financing.
- WEN has a worse Debt to Equity ratio (28.77) than 74.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.77 | ||
| Debt/FCF | 14.15 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.89
WACC6.11%
2.3 Liquidity
- WEN has a Current Ratio of 1.76. This is a normal value and indicates that WEN is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of WEN (1.76) is better than 78.57% of its industry peers.
- WEN has a Quick Ratio of 1.74. This is a normal value and indicates that WEN is financially healthy and should not expect problems in meeting 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
- The earnings per share for WEN have decreased strongly by -11.00% in the last year.
- 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.
- WEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.66% yearly.
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
- Based on estimates for the next years, WEN will show a small growth in Earnings Per Share. The EPS will grow by 1.30% on average per year.
- WEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.89% yearly.
EPS Next Y-33.83%
EPS Next 2Y-13.26%
EPS Next 3Y-5.2%
EPS Next 5Y1.3%
Revenue Next Year1.83%
Revenue Next 2Y1.41%
Revenue Next 3Y1.88%
Revenue Next 5Y1.89%
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. WEN Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 8.17, the valuation of WEN can be described as reasonable.
- 92.06% of the companies in the same industry are more expensive than WEN, based on the Price/Earnings ratio.
- WEN is valuated cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 12.34, WEN is valued correctly.
- WEN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WEN is cheaper than 79.37% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.65. WEN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 12.34 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WEN indicates a somewhat cheap valuation: WEN is cheaper than 72.22% of the companies listed in the same industry.
- WEN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WEN is cheaper than 98.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.7 | ||
| EV/EBITDA | 8.77 |
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 -5.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.88
EPS Next 2Y-13.26%
EPS Next 3Y-5.2%
5. WEN Dividend Analysis
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 1.10. WEN pays more dividend than 99.21% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 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 14.01%, 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)14.01%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- WEN pays out 78.50% 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.
DP78.5%
EPS Next 2Y-13.26%
EPS Next 3Y-5.2%
WEN Fundamentals: All Metrics, Ratios and Statistics
7.27
-0.15 (-2.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-13 2026-02-13/bmo
Earnings (Next)04-30 2026-04-30/bmo
Inst Owners92.99%
Inst Owner Change4.91%
Ins Owners8.89%
Ins Owner Change0.23%
Market Cap1.38B
Revenue(TTM)2.18B
Net Income(TTM)165.07M
Analysts56.11
Price Target8.37 (15.13%)
Short Float %18.6%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.05% |
Yearly Dividend0.66
Dividend Growth(5Y)14.01%
DP78.5%
Div Incr Years0
Div Non Decr Years4
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)-14.23%
PT rev (3m)-17.05%
EPS NQ rev (1m)-43.09%
EPS NQ rev (3m)-43.91%
EPS NY rev (1m)-32.4%
EPS NY rev (3m)-34.23%
Revenue NQ rev (1m)-3.25%
Revenue NQ rev (3m)-3.44%
Revenue NY rev (1m)-0.89%
Revenue NY rev (3m)-1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 12.34 | ||
| P/S | 0.64 | ||
| P/FCF | 5.7 | ||
| P/OCF | 4.02 | ||
| P/B | 11.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.77 |
EPS(TTM)0.89
EY12.24%
EPS(NY)0.59
Fwd EY8.1%
FCF(TTM)1.27
FCFY17.53%
OCF(TTM)1.81
OCFY24.9%
SpS11.44
BVpS0.62
TBVpS-9.6
PEG (NY)N/A
PEG (5Y)0.88
Graham Number3.51
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
WACC6.11%
ROIC/WACC0.89
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-13.26%
EPS Next 3Y-5.2%
EPS Next 5Y1.3%
Revenue 1Y (TTM)-3.1%
Revenue growth 3Y1.28%
Revenue growth 5Y4.66%
Sales Q2Q%-5.45%
Revenue Next Year1.83%
Revenue Next 2Y1.41%
Revenue Next 3Y1.88%
Revenue Next 5Y1.89%
EBIT growth 1Y-8.02%
EBIT growth 3Y1.47%
EBIT growth 5Y4.11%
EBIT Next Year32.27%
EBIT Next 3Y12.43%
EBIT Next 5Y8.11%
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 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 6 / 10 to WENDY'S CO/THE (WEN). This can be considered as Fairly Valued.
How profitable is WENDY'S CO/THE (WEN) stock?
WENDY'S CO/THE (WEN) has a profitability rating of 6 / 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 8.17 and the Price/Book (PB) ratio is 11.79.
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 78.5%.