WENDY'S CO/THE (WEN) Fundamental Analysis & Valuation

NASDAQ:WEN • US95058W1009

Current stock price

6.78 USD
-0.02 (-0.29%)
At close:
6.837 USD
+0.06 (+0.84%)
After Hours:

This WEN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. WEN Profitability Analysis

1.1 Basic Checks

  • WEN had positive earnings in the past year.
  • WEN had a positive operating cash flow in the past year.
  • Each year in the past 5 years WEN has been profitable.
  • WEN had a positive operating cash flow in each of the past 5 years.
WEN Yearly Net Income VS EBIT VS OCF VS FCFWEN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

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.
  • 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.
  • With a Return On Invested Capital value of 5.43%, WEN perfoms like the industry average, 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 significantly below the industry average of 10.68%.
Industry RankSector 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%
WEN Yearly ROA, ROE, ROICWEN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50 100

1.3 Margins

  • WEN's Profit Margin of 7.58% is fine compared to the rest of the industry. WEN outperforms 67.46% of its industry peers.
  • In the last couple of years the Profit Margin of WEN has grown nicely.
  • The Operating Margin of WEN (15.96%) is better than 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.
  • WEN's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
WEN Yearly Profit, Operating, Gross MarginsWEN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

3

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.
  • The number of shares outstanding for WEN has been reduced compared to 1 year ago.
  • Compared to 5 years ago, WEN has less shares outstanding
  • WEN has a worse debt/assets ratio than last year.
WEN Yearly Shares OutstandingWEN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
WEN Yearly Total Debt VS Total AssetsWEN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • Based on the Altman-Z score of 1.02, we must say that WEN is in the distress zone and has some risk of bankruptcy.
  • WEN's Altman-Z score of 1.02 is on the low side compared to the rest of the industry. WEN is outperformed by 61.90% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 28.77
Debt/FCF 14.15
Altman-Z 1.02
ROIC/WACC0.91
WACC5.95%
WEN Yearly LT Debt VS Equity VS FCFWEN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 1.76 indicates that WEN should not have too much problems paying its short term obligations.
  • WEN has a better Current ratio (1.76) 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.
  • The Quick ratio of WEN (1.74) is better than 79.37% of its industry peers.
Industry RankSector Rank
Current Ratio 1.76
Quick Ratio 1.74
WEN Yearly Current Assets VS Current LiabilitesWEN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

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.
  • 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

  • WEN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.30% yearly.
  • 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 Year1.74%
Revenue Next 2Y1.34%
Revenue Next 3Y1.87%
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.
  • 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.
WEN Yearly Revenue VS EstimatesWEN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 500M 1B 1.5B 2B 2.5B
WEN Yearly EPS VS EstimatesWEN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0.5 1 1.5

More info and screens

Find the best growth stocksShow best growing peers

7

4. WEN Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 7.62, the valuation of WEN can be described as very cheap.
  • 92.86% of the companies in the same industry are more expensive than WEN, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 24.75. WEN is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 11.51 indicates a reasonable valuation of WEN.
  • WEN's Price/Forward Earnings ratio is rather cheap when compared to the industry. WEN is cheaper than 80.95% of the companies in the same industry.
  • WEN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 7.62
Fwd PE 11.51
WEN Price Earnings VS Forward Price EarningsWEN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 74.60% of the companies in the same industry are more expensive than WEN, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, WEN is valued cheaply inside the industry as 98.41% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 5.32
EV/EBITDA 8.54
WEN Per share dataWEN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

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 -5.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y-13.26%
EPS Next 3Y-5.2%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. WEN Dividend Analysis

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 1.10. WEN pays more dividend than 99.21% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, WEN pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.05%

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.
  • WEN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)14.01%
Div Incr Years0
Div Non Decr Years4
WEN Yearly Dividends per shareWEN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • WEN pays out 78.50% 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.
DP78.5%
EPS Next 2Y-13.26%
EPS Next 3Y-5.2%
WEN Yearly Income VS Free CF VS DividendWEN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
WEN Dividend Payout.WEN Dividend Payout, showing the Payout Ratio.WEN Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

WEN Fundamentals: All Metrics, Ratios and Statistics

WENDY'S CO/THE

NASDAQ:WEN (3/30/2026, 8:00:02 PM)

After market: 6.837 +0.06 (+0.84%)

6.78

-0.02 (-0.29%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-13
Earnings (Next)04-30
Inst Owners92.99%
Inst Owner Change4.92%
Ins Owners8.89%
Ins Owner Change0.23%
Market Cap1.29B
Revenue(TTM)2.18B
Net Income(TTM)165.07M
Analysts56.11
Price Target8.18 (20.65%)
Short Float %19.08%
Short Ratio3.8
Dividend
Industry RankSector 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
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)-18.52%
EPS NQ rev (1m)-1.12%
EPS NQ rev (3m)-44.06%
EPS NY rev (1m)-32.4%
EPS NY rev (3m)-33.39%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-3.41%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-1.33%
Valuation
Industry RankSector Rank
PE 7.62
Fwd PE 11.51
P/S 0.59
P/FCF 5.32
P/OCF 3.75
P/B 11
P/tB N/A
EV/EBITDA 8.54
EPS(TTM)0.89
EY13.13%
EPS(NY)0.59
Fwd EY8.69%
FCF(TTM)1.27
FCFY18.8%
OCF(TTM)1.81
OCFY26.7%
SpS11.44
BVpS0.62
TBVpS-9.6
PEG (NY)N/A
PEG (5Y)0.82
Graham Number3.51
Profitability
Industry RankSector 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 RankSector 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 1.02
F-Score4
WACC5.95%
ROIC/WACC0.91
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 Year1.74%
Revenue Next 2Y1.34%
Revenue Next 3Y1.87%
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 Fundamental Analysis 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 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 7.62 and the Price/Book (PB) ratio is 11.


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%.