WENDY'S CO/THE (WEN) Fundamental Analysis & Valuation
NASDAQ:WEN • US95058W1009
Current stock price
6.7 USD
-0.26 (-3.74%)
At close:
6.72 USD
+0.02 (+0.3%)
After Hours:
This WEN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- WEN had positive earnings in each of the past 5 years.
- Each year in the past 5 years WEN had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 3.33%, WEN perfoms like the industry average, outperforming 57.14% 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 99.21% of the companies in the same industry.
- WEN has a Return On Invested Capital (5.43%) which is in line with its industry peers.
- WEN had an Average Return On Invested Capital over the past 3 years of 5.65%. This is significantly below the industry average of 10.92%.
| 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 has a Operating Margin of 15.96%. This is in the better half of the industry: WEN outperforms 72.22% 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 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 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
- WEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- WEN has less shares outstanding than it did 1 year ago.
- 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 1.02. This is a bad value and indicates that WEN is not financially healthy and even 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 65.87% 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.
- With a Debt to Equity ratio value of 28.77, WEN is not doing good in the industry: 74.60% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.77 | ||
| Debt/FCF | 14.15 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.87
WACC6.21%
2.3 Liquidity
- A Current Ratio of 1.76 indicates that WEN should not have too much problems paying its short term obligations.
- The Current ratio of WEN (1.76) is better than 79.37% 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.
- WEN has a better Quick ratio (1.74) than 80.16% of its industry peers.
| 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.
- 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.
- The Revenue has decreased by -3.10% in the past year.
- Measured over the past years, WEN shows a small growth in Revenue. The Revenue has been growing by 4.66% on average per year.
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
- The Earnings Per Share is expected to grow by 1.08% on average over the next years.
- The Revenue is expected to grow by 1.81% on average over the next years.
EPS Next Y-33.83%
EPS Next 2Y-13.31%
EPS Next 3Y-5.2%
EPS Next 5Y1.08%
Revenue Next Year1.64%
Revenue Next 2Y1.29%
Revenue Next 3Y1.82%
Revenue Next 5Y1.81%
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.
4. WEN Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 7.53, which indicates a rather cheap valuation of WEN.
- Compared to the rest of the industry, the Price/Earnings ratio of WEN indicates a rather cheap valuation: WEN is cheaper than 94.44% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.64. WEN is valued rather cheaply when compared to this.
- WEN is valuated reasonably with a Price/Forward Earnings ratio of 11.38.
- Based on the Price/Forward Earnings ratio, WEN is valued cheaper than 85.71% of the companies in the same industry.
- WEN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 11.38 |
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 74.60% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, WEN is valued cheaply inside the industry as 96.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.26 | ||
| EV/EBITDA | 8.6 |
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 -5.20% in the coming years.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y-13.31%
EPS Next 3Y-5.2%
5. WEN Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 8.08%, WEN is a good candidate for dividend investing.
- WEN's Dividend Yield is rather good when compared to the industry average which is at 1.05. WEN pays more dividend than 100.00% of the companies in the same industry.
- WEN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
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.
Dividend Growth(5Y)14.01%
Div Incr Years0
Div Non Decr Years0
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-13.31%
EPS Next 3Y-5.2%
WEN Fundamentals: All Metrics, Ratios and Statistics
6.7
-0.26 (-3.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Industry Strength28.57
Industry Growth42.24
Earnings (Last)02-13 2026-02-13/bmo
Earnings (Next)05-08 2026-05-08/bmo
Inst Owners92.99%
Inst Owner Change-0.37%
Ins Owners8.97%
Ins Owner Change0.23%
Market Cap1.28B
Revenue(TTM)2.18B
Net Income(TTM)165.07M
Analysts55.43
Price Target8.18 (22.09%)
Short Float %25.54%
Short Ratio4.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.08% |
Yearly Dividend0.66
Dividend Growth(5Y)14.01%
DP78.5%
Div Incr Years0
Div Non Decr Years0
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)-2.2%
PT rev (3m)-16.87%
EPS NQ rev (1m)-2.66%
EPS NQ rev (3m)-45.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-32.87%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-3.78%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 11.38 | ||
| P/S | 0.59 | ||
| P/FCF | 5.26 | ||
| P/OCF | 3.7 | ||
| P/B | 10.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.6 |
EPS(TTM)0.89
EY13.28%
EPS(NY)0.59
Fwd EY8.79%
FCF(TTM)1.27
FCFY19.01%
OCF(TTM)1.81
OCFY27%
SpS11.43
BVpS0.62
TBVpS-9.59
PEG (NY)N/A
PEG (5Y)0.81
Graham Number3.51298 (-47.57%)
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 | 1.02 |
F-Score4
WACC6.21%
ROIC/WACC0.87
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-13.31%
EPS Next 3Y-5.2%
EPS Next 5Y1.08%
Revenue 1Y (TTM)-3.1%
Revenue growth 3Y1.28%
Revenue growth 5Y4.66%
Sales Q2Q%-5.45%
Revenue Next Year1.64%
Revenue Next 2Y1.29%
Revenue Next 3Y1.82%
Revenue Next 5Y1.81%
EBIT growth 1Y-8.02%
EBIT growth 3Y1.47%
EBIT growth 5Y4.11%
EBIT Next Year32.25%
EBIT Next 3Y12.44%
EBIT Next 5Y7.91%
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.
Can you provide the valuation status for WENDY'S CO/THE?
ChartMill assigns a valuation rating of 7 / 10 to WENDY'S CO/THE (WEN). This can be considered as Undervalued.
What is the profitability of WEN stock?
WENDY'S CO/THE (WEN) has a profitability rating of 6 / 10.
Can you provide the financial health for WEN stock?
The financial health rating of WENDY'S CO/THE (WEN) is 3 / 10.
How sustainable is the dividend of WENDY'S CO/THE (WEN) stock?
The dividend rating of WENDY'S CO/THE (WEN) is 6 / 10 and the dividend payout ratio is 78.5%.