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

NASDAQ:WEN • US95058W1009

Current stock price

7.16 USD
+0.07 (+0.99%)
At close:
7.1874 USD
+0.03 (+0.38%)
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.
  • Each year in the past 5 years WEN had a positive operating cash flow.
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

  • 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.
  • The Average Return On Invested Capital over the past 3 years for WEN is below the industry average of 10.56%.
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 68.25% of its industry peers.
  • WEN's Profit Margin has improved in the last couple of years.
  • WEN has a better Operating Margin (15.96%) than 71.43% of its industry peers.
  • WEN's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of WEN (61.18%) is better than 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 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

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3

2. WEN Health Analysis

2.1 Basic Checks

  • WEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, WEN has less shares outstanding
  • The number of shares outstanding for WEN has been reduced compared to 5 years ago.
  • 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

  • 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.
  • WEN has a worse Altman-Z score (1.03) than 63.49% 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.
  • The Debt to FCF ratio of WEN (14.15) 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 RankSector Rank
Debt/Equity 28.77
Debt/FCF 14.15
Altman-Z 1.03
ROIC/WACC0.89
WACC6.13%
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.
  • With a decent Current ratio value of 1.76, WEN is doing good in the industry, outperforming 78.57% of the companies in the same industry.
  • 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.
  • With a decent Quick ratio value of 1.74, WEN is doing good in the industry, outperforming 79.37% of the companies in the same industry.
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

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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%.
  • Measured over the past years, WEN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.32% on average per year.
  • Looking at the last year, WEN shows a decrease in Revenue. The Revenue has decreased by -3.10% in the last 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 Year1.74%
Revenue Next 2Y1.34%
Revenue Next 3Y1.87%
Revenue Next 5Y1.89%

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.
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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6

4. WEN Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 8.04, which indicates a very decent valuation of WEN.
  • Based on the Price/Earnings ratio, WEN is valued cheaper than 91.27% 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 25.23.
  • Based on the Price/Forward Earnings ratio of 12.16, the valuation of WEN can be described as correct.
  • Based on the Price/Forward Earnings ratio, WEN is valued cheaply inside the industry as 80.16% of the companies are valued more expensively.
  • WEN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.42, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.04
Fwd PE 12.16
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

  • Based on the Enterprise Value to EBITDA ratio, WEN is valued a bit cheaper than 74.60% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of WEN indicates a rather cheap valuation: WEN is cheaper than 98.41% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 5.62
EV/EBITDA 8.65
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)0.86
EPS Next 2Y-13.26%
EPS Next 3Y-5.2%

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

7

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 1.09. 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

  • 78.50% of the earnings are spent on dividend by WEN. 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 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

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WEN Fundamentals: All Metrics, Ratios and Statistics

WENDY'S CO/THE

NASDAQ:WEN (3/23/2026, 4:36:32 PM)

After market: 7.1874 +0.03 (+0.38%)

7.16

+0.07 (+0.99%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-13
Earnings (Next)04-30
Inst Owners92.99%
Inst Owner Change4.91%
Ins Owners8.89%
Ins Owner Change0.23%
Market Cap1.36B
Revenue(TTM)2.18B
Net Income(TTM)165.07M
Analysts56.11
Price Target8.37 (16.9%)
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)-14.23%
PT rev (3m)-17.05%
EPS NQ rev (1m)-18.05%
EPS NQ rev (3m)-43.91%
EPS NY rev (1m)-32.4%
EPS NY rev (3m)-34.23%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-1.33%
Valuation
Industry RankSector Rank
PE 8.04
Fwd PE 12.16
P/S 0.63
P/FCF 5.62
P/OCF 3.96
P/B 11.61
P/tB N/A
EV/EBITDA 8.65
EPS(TTM)0.89
EY12.43%
EPS(NY)0.59
Fwd EY8.23%
FCF(TTM)1.27
FCFY17.8%
OCF(TTM)1.81
OCFY25.28%
SpS11.44
BVpS0.62
TBVpS-9.6
PEG (NY)N/A
PEG (5Y)0.86
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 1.03
F-Score4
WACC6.13%
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 Year1.74%
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 8.04 and the Price/Book (PB) ratio is 11.61.


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%.