8.48 USD
+0.14 (+1.68%)
8.51 USD
+0.03 (+0.35%)
Taking everything into account, WEN scores 5 out of 10 in our fundamental rating. WEN was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. While WEN has a great profitability rating, there are quite some concerns on its financial health. WEN is valued quite cheap, but it does not seem to be growing. Finally WEN also has an excellent dividend rating.
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.
- In the past 5 years WEN always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 3.74%, WEN perfoms like the industry average, outperforming 59.40% of the companies in the same industry.
- WEN has a better Return On Equity (170.42%) than 98.50% of its industry peers.
- With a Return On Invested Capital value of 6.67%, WEN perfoms like the industry average, outperforming 58.65% 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 10.34%.
- The last Return On Invested Capital (6.67%) for WEN is above the 3 year average (5.43%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
- WEN has a Profit Margin of 8.43%. This is in the better half of the industry: WEN outperforms 69.92% of its industry peers.
- WEN's Profit Margin has improved in the last couple of years.
- WEN has a Operating Margin of 17.49%. This is in the better half of the industry: WEN outperforms 75.94% 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's Gross Margin of 62.41% is fine compared to the rest of the industry. WEN outperforms 78.20% of its industry peers.
- WEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
- 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
- The debt/assets ratio for WEN is higher compared to a year ago.
2.2 Solvency
- WEN has an Altman-Z score of 0.98. 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 0.98, WEN is doing worse than 64.66% of the companies in the same industry.
- The Debt to FCF ratio of WEN is 14.24, which is on the high side as it means it would take WEN, 14.24 years of fcf income to pay off all of its debts.
- WEN has a Debt to FCF ratio (14.24) which is in line with its industry peers.
- WEN has a Debt/Equity ratio of 26.89. This is a high value indicating a heavy dependency on external financing.
- WEN has a worse Debt to Equity ratio (26.89) than 69.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.89 | ||
| Debt/FCF | 14.24 | ||
| Altman-Z | 0.98 |
ROIC/WACC1
WACC6.66%
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 comparable to the rest of the industry.
- A Quick Ratio of 0.80 indicates that WEN may have some problems paying its short term obligations.
- The Quick ratio of WEN (0.80) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- WEN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.08%.
- 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.
- The Revenue has decreased by -0.21% in the past year.
- 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.
- Based on estimates for the next years, WEN will show a small growth in Revenue. The Revenue will grow by 2.15% on average per year.
EPS Next Y-11.76%
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
EPS Next 5Y5.27%
Revenue Next Year-2.84%
Revenue Next 2Y0.07%
Revenue Next 3Y0.49%
Revenue Next 5Y2.15%
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. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 8.65, the valuation of WEN can be described as reasonable.
- Based on the Price/Earnings ratio, WEN is valued cheaper than 96.24% of the companies in the same industry.
- When comparing the Price/Earnings ratio of WEN to the average of the S&P500 Index (27.33), we can say WEN is valued rather cheaply.
- WEN is valuated reasonably with a Price/Forward Earnings ratio of 9.59.
- Based on the Price/Forward Earnings ratio, WEN is valued cheaply inside the industry as 90.23% of the companies are valued more expensively.
- WEN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.65 | ||
| Fwd PE | 9.59 |
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 75.94% of the companies listed in the same industry.
- 97.74% of the companies in the same industry are more expensive than WEN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.79 | ||
| EV/EBITDA | 8.53 |
4.3 Compensation for Growth
- The decent profitability rating of WEN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.68%, WEN is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 6.32, WEN pays a better dividend. On top of this WEN pays more dividend than 97.74% of the companies listed in the same industry.
- WEN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
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
5.3 Sustainability
- WEN pays out 82.75% 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.
DP82.75%
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
8.48
+0.14 (+1.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-07 2025-11-07/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners90.93%
Inst Owner Change0.13%
Ins Owners8.88%
Ins Owner Change0.22%
Market Cap1.61B
Revenue(TTM)2.21B
Net Income(TTM)186.09M
Analysts56.11
Price Target10.04 (18.4%)
Short Float %15.41%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
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)-0.44%
PT rev (3m)-11.81%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)-18.23%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.65 | ||
| Fwd PE | 9.59 | ||
| P/S | 0.73 | ||
| P/FCF | 6.79 | ||
| P/OCF | 4.69 | ||
| P/B | 14.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.53 |
EPS(TTM)0.98
EY11.56%
EPS(NY)0.88
Fwd EY10.43%
FCF(TTM)1.25
FCFY14.73%
OCF(TTM)1.81
OCFY21.31%
SpS11.6
BVpS0.57
TBVpS-9.68
PEG (NY)N/A
PEG (5Y)0.78
Graham Number3.56
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.98 |
F-Score6
WACC6.66%
ROIC/WACC1
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-11.76%
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
EPS Next 5Y5.27%
Revenue 1Y (TTM)-0.21%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-3.04%
Revenue Next Year-2.84%
Revenue Next 2Y0.07%
Revenue Next 3Y0.49%
Revenue Next 5Y2.15%
EBIT growth 1Y7%
EBIT growth 3Y4.25%
EBIT growth 5Y6.41%
EBIT Next Year38.87%
EBIT Next 3Y12.3%
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 8.65 and the Price/Book (PB) ratio is 14.78.
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%.