WENDY'S CO/THE (WEN) Stock Fundamental Analysis

NASDAQ:WEN • US95058W1009

7.575 USD
+0.31 (+4.2%)
Last: Feb 13, 2026, 12:43 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to WEN. WEN was compared to 131 industry peers in the Hotels, Restaurants & Leisure industry. WEN has an excellent profitability rating, but there are concerns on its financial health. WEN is cheap, but on the other hand it scores bad on growth. Finally WEN also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

7

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.
  • In the past 5 years WEN has always 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 100M 200M 300M 400M

1.2 Ratios

  • WEN's Return On Assets of 3.74% is in line compared to the rest of the industry. WEN outperforms 59.54% of its industry peers.
  • The Return On Equity of WEN (170.42%) is better than 99.24% of its industry peers.
  • WEN's Return On Invested Capital of 6.67% is in line compared to the rest of the industry. WEN outperforms 58.78% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for WEN is below the industry average of 10.42%.
  • The 3 year average ROIC (5.43%) for WEN is below the current ROIC(6.67%), indicating increased profibility in the last year.
Industry RankSector 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%
WEN Yearly ROA, ROE, ROICWEN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

1.3 Margins

  • With a decent Profit Margin value of 8.43%, WEN is doing good in the industry, outperforming 69.47% of the companies in the same industry.
  • WEN's Profit Margin has improved in the last couple of years.
  • WEN has a better Operating Margin (17.49%) than 75.57% of its industry peers.
  • In the last couple of years the Operating Margin of WEN has remained more or less at the same level.
  • WEN has a Gross Margin of 62.41%. This is in the better half of the industry: WEN outperforms 77.86% 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 RankSector 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%
WEN Yearly Profit, Operating, Gross MarginsWEN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WEN is still 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.
  • Compared to 1 year ago, WEN has a worse debt to assets ratio.
WEN Yearly Shares OutstandingWEN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 1B 2B 3B 4B 5B

2.2 Solvency

  • Based on the Altman-Z score of 0.96, we must say that WEN is in the distress zone and has some risk of bankruptcy.
  • WEN has a Altman-Z score of 0.96. This is in the lower half of the industry: WEN underperforms 61.07% 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's Debt to FCF ratio of 14.24 is in line compared to the rest of the industry. WEN outperforms 53.44% of its industry peers.
  • A Debt/Equity ratio of 26.89 is on the high side and indicates that WEN has dependencies on debt financing.
  • WEN's Debt to Equity ratio of 26.89 is on the low side compared to the rest of the industry. WEN is outperformed by 70.99% of its industry peers.
Industry RankSector Rank
Debt/Equity 26.89
Debt/FCF 14.24
Altman-Z 0.96
ROIC/WACC1.03
WACC6.5%
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 1B 2B 3B

2.3 Liquidity

  • WEN has a Current 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 has a Current ratio (0.81) which is in line with its industry peers.
  • 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 has a Quick ratio (0.80) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.81
Quick Ratio 0.8
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 200M 400M 600M 800M 1B

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

3

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-11.95%
EPS Next 2Y-6.66%
EPS Next 3Y-2.61%
EPS Next 5Y5.27%
Revenue Next Year-2.93%
Revenue Next 2Y-0.11%
Revenue Next 3Y0.54%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • WEN is valuated cheaply with a Price/Earnings ratio of 7.73.
  • WEN's Price/Earnings ratio is rather cheap when compared to the industry. WEN is cheaper than 95.42% of the companies in the same industry.
  • WEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.67.
  • Based on the Price/Forward Earnings ratio of 8.69, the valuation of WEN can be described as reasonable.
  • 91.60% of the companies in the same industry are more expensive than WEN, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.69, WEN is valued rather cheaply.
Industry RankSector Rank
PE 7.73
Fwd PE 8.69
WEN Price Earnings VS Forward Price EarningsWEN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 79.39% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, WEN is valued cheaply inside the industry as 98.47% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 6.06
EV/EBITDA 8.16
WEN Per share dataWEN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

  • WEN has a very decent profitability rating, which may justify a higher PE ratio.
  • A cheap valuation may be justified as WEN's earnings are expected to decrease with -2.61% in the coming years.
PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y-6.66%
EPS Next 3Y-2.61%

More info and screens

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

7

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 97.71% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, 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 32.37%!
  • 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)32.37%
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 0.2 0.4 0.6 0.8

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-6.66%
EPS Next 3Y-2.61%
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 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

WENDY'S CO/THE

NASDAQ:WEN (2/13/2026, 12:43:04 PM)

7.575

+0.31 (+4.2%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-07
Earnings (Next)02-13
Inst Owners90.93%
Inst Owner Change-1.18%
Ins Owners8.88%
Ins Owner Change0.14%
Market Cap1.44B
Revenue(TTM)2.21B
Net Income(TTM)186.09M
Analysts56.11
Price Target9.76 (28.84%)
Short Float %17.12%
Short Ratio4.56
Dividend
Industry RankSector Rank
Dividend Yield 7.05%
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)-2.87%
PT rev (3m)-11.4%
EPS NQ rev (1m)-1.26%
EPS NQ rev (3m)-16.84%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)1.9%
Revenue NQ rev (1m)-0.67%
Revenue NQ rev (3m)1.05%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)1.16%
Valuation
Industry RankSector Rank
PE 7.73
Fwd PE 8.69
P/S 0.65
P/FCF 6.06
P/OCF 4.19
P/B 13.2
P/tB N/A
EV/EBITDA 8.16
EPS(TTM)0.98
EY12.94%
EPS(NY)0.87
Fwd EY11.5%
FCF(TTM)1.25
FCFY16.49%
OCF(TTM)1.81
OCFY23.85%
SpS11.6
BVpS0.57
TBVpS-9.68
PEG (NY)N/A
PEG (5Y)0.69
Graham Number3.56
Profitability
Industry RankSector 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 RankSector 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 0.96
F-Score6
WACC6.5%
ROIC/WACC1.03
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-11.95%
EPS Next 2Y-6.66%
EPS Next 3Y-2.61%
EPS Next 5Y5.27%
Revenue 1Y (TTM)-0.21%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-3.04%
Revenue Next Year-2.93%
Revenue Next 2Y-0.11%
Revenue Next 3Y0.54%
Revenue Next 5Y2.15%
EBIT growth 1Y7%
EBIT growth 3Y4.25%
EBIT growth 5Y6.41%
EBIT Next Year39.05%
EBIT Next 3Y12.25%
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 7.73 and the Price/Book (PB) ratio is 13.2.


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%.