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

NASDAQ:WEN • US95058W1009

8.205 USD
+1.21 (+17.21%)
Last: Feb 18, 2026, 12:45 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Taking everything into account, WEN scores 4 out of 10 in our fundamental rating. WEN was compared to 126 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.


Dividend Valuation Growth Profitability Health

6

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.
  • Of the past 5 years WEN 4 years were profitable.
  • WEN had a positive operating cash flow in 4 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 has a Return On Assets of 3.74%. This is comparable to the rest of the industry: WEN outperforms 58.73% of its industry peers.
  • With an excellent Return On Equity value of 170.42%, WEN belongs to the best of the industry, outperforming 99.21% of the companies in the same industry.
  • WEN's Return On Invested Capital of 6.67% is in line compared to the rest of the industry. WEN outperforms 56.35% 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 10.58%.
  • 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

  • WEN's Profit Margin of 8.43% 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.
  • Looking at the Operating Margin, with a value of 17.49%, WEN is in the better half of the industry, outperforming 74.60% of the companies in the same industry.
  • In the last couple of years the Operating Margin of WEN has remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 62.41%, WEN is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
  • WEN's Gross Margin has been stable in the last couple of years.
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

1

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WEN is creating some value.
  • There is no outstanding debt for WEN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
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 0.95, we must say that WEN is in the distress zone and has some risk of bankruptcy.
  • WEN has a worse Altman-Z score (0.95) than 65.87% of its industry peers.
  • 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.
  • The Debt to FCF ratio of WEN (14.24) is comparable to the rest of the industry.
  • WEN has a Debt/Equity ratio of 26.89. This is a high value indicating a heavy dependency on external 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 74.60% of its industry peers.
Industry RankSector Rank
Debt/Equity 26.89
Debt/FCF 14.24
Altman-Z 0.95
ROIC/WACC1.07
WACC6.21%
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.
  • With a Current ratio value of 0.81, WEN is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
  • 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 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

2

3. Growth

3.1 Past

  • The earnings per share for WEN have decreased strongly by -11.00% in the last year.
  • The Earnings Per Share has been growing by 9.32% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 6.90% on average over the next years.
  • 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

  • The EPS 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

  • Based on the Price/Earnings ratio of 9.22, the valuation of WEN can be described as reasonable.
  • Based on the Price/Earnings ratio, WEN is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of WEN to the average of the S&P500 Index (27.16), we can say WEN is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 9.42, the valuation of WEN can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, WEN is valued cheaply inside the industry as 94.44% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.10, WEN is valued rather cheaply.
Industry RankSector Rank
PE 9.22
Fwd PE 9.42
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

  • WEN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WEN is cheaper than 77.78% 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 97.62% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 6.57
EV/EBITDA 8.07
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.
PEG (NY)N/A
PEG (5Y)0.99
EPS Next 2Y1.88%
EPS Next 3Y8.22%

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

7

5. Dividend

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 99.21% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, 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 2Y1.88%
EPS Next 3Y8.22%
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

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Find the best dividend stocksShow peers with best dividend

WENDY'S CO/THE

NASDAQ:WEN (2/18/2026, 12:45:09 PM)

8.205

+1.21 (+17.21%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-13
Earnings (Next)04-30
Inst Owners90.93%
Inst Owner Change3.03%
Ins Owners8.88%
Ins Owner Change0.09%
Market Cap1.56B
Revenue(TTM)N/A
Net Income(TTM)186.09M
Analysts56.11
Price Target9.76 (18.95%)
Short Float %18.09%
Short Ratio4.39
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)-0.36%
EPS NQ rev (3m)-17.03%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)1.9%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)1.16%
Valuation
Industry RankSector Rank
PE 9.22
Fwd PE 9.42
P/S 0.71
P/FCF 6.57
P/OCF 4.54
P/B 14.3
P/tB N/A
EV/EBITDA 8.07
EPS(TTM)0.89
EY10.85%
EPS(NY)0.87
Fwd EY10.62%
FCF(TTM)1.25
FCFY15.23%
OCF(TTM)1.81
OCFY22.02%
SpS11.6
BVpS0.57
TBVpS-9.68
PEG (NY)N/A
PEG (5Y)0.99
Graham Number3.39
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 0.95
F-Score6
WACC6.21%
ROIC/WACC1.07
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 Year39.05%
EBIT Next 3Y12.25%
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 9.22 and the Price/Book (PB) ratio is 14.3.


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%.