WENDY'S CO/THE (WEN) Fundamental Analysis & Valuation
NASDAQ:WEN • US95058W1009
7.15 USD
-0.36 (-4.79%)
At close: Mar 4, 2026
7.21 USD
+0.06 (+0.84%)
After Hours: 3/4/2026, 8:01:19 PM
This WEN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 4 out of 10 to WEN. WEN was compared to 125 industry peers in the Hotels, Restaurants & Leisure industry. WEN has a medium profitability rating, but doesn't score so well on its financial health evaluation. WEN has a bad growth rate and is valued cheaply. WEN also has an excellent dividend rating.
1. WEN Profitability Analysis
1.1 Basic Checks
- In the past year WEN was profitable.
- In the past year WEN had a positive cash flow from operations.
- WEN had positive earnings in 4 of the past 5 years.
- Of the past 5 years WEN 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.74%, WEN is in line with its industry, outperforming 58.40% of the companies in the same industry.
- With an excellent Return On Equity value of 170.42%, WEN belongs to the best of the industry, outperforming 99.20% of the companies in the same industry.
- WEN has a Return On Invested Capital of 6.67%. This is comparable to the rest of the industry: WEN outperforms 55.20% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WEN is significantly below the industry average of 10.78%.
- The 3 year average ROIC (5.43%) for WEN is below the current ROIC(6.67%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 8.43%, WEN is in the better half of the industry, outperforming 70.40% of the companies in the same industry.
- In the last couple of years the Profit Margin of WEN has grown nicely.
- Looking at the Operating Margin, with a value of 17.49%, WEN is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
- WEN's Operating Margin has been stable in the last couple of years.
- With a decent Gross Margin value of 62.41%, WEN is doing good in the industry, outperforming 78.40% of the companies in the same industry.
- 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. WEN Health Analysis
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- WEN has an Altman-Z score of 0.96. This is a bad value and indicates that WEN is not financially healthy and even 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 64.80% 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 has a Debt to FCF ratio (14.24) which is in line with its industry peers.
- A Debt/Equity ratio of 26.89 is on the high side and indicates that WEN has dependencies on debt financing.
- The Debt to Equity ratio of WEN (26.89) is worse than 74.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.89 | ||
| Debt/FCF | 14.24 | ||
| Altman-Z | 0.96 |
ROIC/WACC1.08
WACC6.15%
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 worse Current ratio (0.81) than 61.60% of its industry peers.
- A Quick Ratio of 0.80 indicates that WEN may have some problems paying its short term obligations.
- WEN has a Quick ratio (0.80) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.8 |
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%.
- WEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.32% yearly.
EPS 1Y (TTM)-11%
EPS 3Y0.76%
EPS 5Y9.32%
EPS Q2Q%-36%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 6.90% yearly.
- The Revenue is expected to grow by 1.75% on average over the next years.
EPS Next Y-2.11%
EPS Next 2Y1.88%
EPS Next 3Y8.22%
EPS Next 5Y6.9%
Revenue Next Year2.15%
Revenue Next 2Y1.61%
Revenue Next 3Y1.85%
Revenue Next 5Y1.75%
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.
4. WEN Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 8.03, the valuation of WEN can be described as reasonable.
- Based on the Price/Earnings ratio, WEN is valued cheaper than 92.80% of the companies in the same industry.
- When comparing the Price/Earnings ratio of WEN to the average of the S&P500 Index (27.03), we can say WEN is valued rather cheaply.
- With a Price/Forward Earnings ratio of 8.21, the valuation of WEN can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, WEN is valued cheaply inside the industry as 92.80% of the companies are valued more expensively.
- WEN is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.03 | ||
| Fwd PE | 8.21 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WEN is valued a bit cheaper than 80.00% 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 98.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.72 | ||
| EV/EBITDA | 8.24 |
4.3 Compensation for Growth
- The decent profitability rating of WEN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.86
EPS Next 2Y1.88%
EPS Next 3Y8.22%
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 1.10. WEN pays more dividend than 99.20% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, WEN pays a better dividend.
| Industry Rank | Sector 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
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 2Y1.88%
EPS Next 3Y8.22%
WEN Fundamentals: All Metrics, Ratios and Statistics
7.15
-0.36 (-4.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-13 2026-02-13/bmo
Earnings (Next)04-30 2026-04-30/bmo
Inst Owners90.93%
Inst Owner Change4.91%
Ins Owners8.88%
Ins Owner Change0.18%
Market Cap1.36B
Revenue(TTM)N/A
Net Income(TTM)186.09M
Analysts56.11
Price Target8.37 (17.06%)
Short Float %18.6%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.05% |
Yearly Dividend1
Dividend Growth(5Y)32.37%
DP82.75%
Div Incr Years0
Div Non Decr Years4
Ex-Date03-02 2026-03-02 (0.14)
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)-15%
PT rev (3m)-18.49%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-2.36%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)1.9%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.03 | ||
| Fwd PE | 8.21 | ||
| P/S | 0.62 | ||
| P/FCF | 5.72 | ||
| P/OCF | 3.96 | ||
| P/B | 12.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.24 |
EPS(TTM)0.89
EY12.45%
EPS(NY)0.87
Fwd EY12.19%
FCF(TTM)1.25
FCFY17.47%
OCF(TTM)1.81
OCFY25.27%
SpS11.6
BVpS0.57
TBVpS-9.68
PEG (NY)N/A
PEG (5Y)0.86
Graham Number3.39
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 | 0.96 |
F-Score6
WACC6.15%
ROIC/WACC1.08
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)-11%
EPS 3Y0.76%
EPS 5Y9.32%
EPS Q2Q%-36%
EPS Next Y-2.11%
EPS Next 2Y1.88%
EPS Next 3Y8.22%
EPS Next 5Y6.9%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-5.45%
Revenue Next Year2.15%
Revenue Next 2Y1.61%
Revenue Next 3Y1.85%
Revenue Next 5Y1.75%
EBIT growth 1Y7%
EBIT growth 3Y4.25%
EBIT growth 5Y6.41%
EBIT Next Year39.08%
EBIT Next 3Y8.63%
EBIT Next 5Y8.17%
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 4 / 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 8.03 and the Price/Book (PB) ratio is 12.46.
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%.