WENDY'S CO/THE (WEN) Fundamental Analysis & Valuation
NASDAQ:WEN • US95058W1009
Current stock price
7.14 USD
+0.21 (+3.03%)
At close:
7.1398 USD
0 (0%)
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.
- WEN had a positive operating cash flow in the past year.
- In the past 5 years WEN has always been profitable.
- WEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.33%, WEN is in line with its industry, 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 below the industry average of 10.55%.
| 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
- WEN has a better Profit Margin (7.58%) than 67.46% of its industry peers.
- In the last couple of years the Profit Margin of WEN has grown nicely.
- With a decent Operating Margin value of 15.96%, WEN is doing good in the industry, outperforming 72.22% of the companies in the same industry.
- WEN's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 61.18%, WEN is in the better half of the industry, outperforming 76.19% 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 | 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WEN is destroying value.
- WEN has less shares outstanding than it did 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
- Based on the Altman-Z score of 1.02, we must say that WEN is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.02, WEN is not doing good in the industry: 65.08% of the companies in the same industry are doing better.
- 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.
- With a Debt to FCF ratio value of 14.15, WEN perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- WEN has a Debt/Equity ratio of 28.77. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 28.77, WEN is doing worse than 74.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.77 | ||
| Debt/FCF | 14.15 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.87
WACC6.23%
2.3 Liquidity
- A Current Ratio of 1.76 indicates that WEN should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.76, WEN is in the better half of the industry, outperforming 79.37% 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.
- Looking at the Quick ratio, with a value of 1.74, WEN belongs to the top of the industry, outperforming 80.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.74 |
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%.
- The Earnings Per Share has been growing by 9.32% on average over the past years. This is quite good.
- Looking at the last year, WEN shows a decrease in Revenue. The Revenue has decreased by -3.10% in the last 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
- 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-13.31%
EPS Next 3Y-5.2%
EPS Next 5Y1.3%
Revenue Next Year1.64%
Revenue Next 2Y1.29%
Revenue Next 3Y1.82%
Revenue Next 5Y1.89%
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.
- 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.
4. WEN Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 8.02 indicates a reasonable valuation of WEN.
- Based on the Price/Earnings ratio, WEN is valued cheaply inside the industry as 94.44% of the companies are valued more expensively.
- WEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
- Based on the Price/Forward Earnings ratio of 12.12, the valuation of WEN can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WEN indicates a rather cheap valuation: WEN is cheaper than 85.71% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of WEN to the average of the S&P500 Index (22.24), we can say WEN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
- WEN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WEN is cheaper than 75.40% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, WEN is valued cheaply inside the industry as 97.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.61 | ||
| EV/EBITDA | 8.59 |
4.3 Compensation for Growth
- The decent profitability rating of WEN 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)0.86
EPS Next 2Y-13.31%
EPS Next 3Y-5.2%
5. WEN Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 8.18%, WEN is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.04, WEN pays a better dividend. On top of this WEN pays more dividend than 100.00% 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.18% |
5.2 History
- The dividend of WEN is nicely growing with an annual growth rate of 14.01%!
- 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
7.14
+0.21 (+3.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-13 2026-02-13/bmo
Earnings (Next)05-08 2026-05-08/bmo
Inst Owners92.99%
Inst Owner Change-0.25%
Ins Owners8.97%
Ins Owner Change0.23%
Market Cap1.36B
Revenue(TTM)2.18B
Net Income(TTM)165.07M
Analysts55.43
Price Target8.18 (14.57%)
Short Float %21.84%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.18% |
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)-3.27%
EPS NQ rev (3m)-44.96%
EPS NY rev (1m)0%
EPS NY rev (3m)-33.39%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-3.57%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 12.12 | ||
| P/S | 0.62 | ||
| P/FCF | 5.61 | ||
| P/OCF | 3.95 | ||
| P/B | 11.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.59 |
EPS(TTM)0.89
EY12.46%
EPS(NY)0.59
Fwd EY8.25%
FCF(TTM)1.27
FCFY17.84%
OCF(TTM)1.81
OCFY25.33%
SpS11.43
BVpS0.62
TBVpS-9.59
PEG (NY)N/A
PEG (5Y)0.86
Graham Number3.51298 (-50.8%)
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
WACC6.23%
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 5Y1.3%
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 5Y1.89%
EBIT growth 1Y-8.02%
EBIT growth 3Y1.47%
EBIT growth 5Y4.11%
EBIT Next Year32.25%
EBIT Next 3Y12.44%
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.
Can you provide the valuation status for WENDY'S CO/THE?
ChartMill assigns a valuation rating of 6 / 10 to WENDY'S CO/THE (WEN). This can be considered as Fairly Valued.
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%.