WENDY'S CO/THE (WEN) Fundamental Analysis & Valuation

NASDAQ:WEN • US95058W1009

Current stock price

7.005 USD
-0.08 (-1.2%)
Last:

This WEN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

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.
  • Each year in the past 5 years WEN has been profitable.
  • WEN had a positive operating cash flow in each 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 2025 100M 200M 300M 400M

1.2 Ratios

  • The Return On Assets of WEN (3.33%) is comparable to the rest of the industry.
  • WEN has a better Return On Equity (140.63%) than 99.21% of its industry peers.
  • The Return On Invested Capital of WEN (5.43%) is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for WEN is below the industry average of 10.56%.
Industry RankSector 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%
WEN Yearly ROA, ROE, ROICWEN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50 100

1.3 Margins

  • With a decent Profit Margin value of 7.58%, WEN is doing good in the industry, outperforming 67.46% of the companies in the same industry.
  • WEN's Profit Margin has improved in the last couple of years.
  • WEN's Operating Margin of 15.96% is fine compared to the rest 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.
  • In the last couple of years the Gross Margin of WEN has remained more or less at the same level.
Industry RankSector 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%
WEN Yearly Profit, Operating, Gross MarginsWEN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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3

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.
  • Compared to 1 year ago, WEN has less shares outstanding
  • The number of shares outstanding for WEN has been reduced compared to 5 years ago.
  • The debt/assets ratio for WEN is higher compared to a year ago.
WEN Yearly Shares OutstandingWEN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • WEN has an Altman-Z score of 1.03. This is a bad value and indicates that WEN is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of WEN (1.03) is worse than 63.49% 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.
  • The Debt to FCF ratio of WEN (14.15) 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.
  • WEN has a worse Debt to Equity ratio (28.77) than 74.60% of its industry peers.
Industry RankSector Rank
Debt/Equity 28.77
Debt/FCF 14.15
Altman-Z 1.03
ROIC/WACC0.91
WACC5.99%
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 2025 1B 2B 3B

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 RankSector Rank
Current Ratio 1.76
Quick Ratio 1.74
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 2025 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

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.
  • 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

  • WEN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.30% yearly.
  • Based on estimates for the next years, WEN will show a small growth in Revenue. The Revenue will grow by 1.89% on average per year.
EPS Next Y-33.83%
EPS Next 2Y-13.26%
EPS Next 3Y-5.2%
EPS Next 5Y1.3%
Revenue Next Year1.74%
Revenue Next 2Y1.34%
Revenue Next 3Y1.87%
Revenue Next 5Y1.89%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • 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.
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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7

4. WEN Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 7.87, the valuation of WEN can be described as very cheap.
  • 93.65% of the companies in the same industry are more expensive than WEN, based on the Price/Earnings ratio.
  • WEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.21.
  • The Price/Forward Earnings ratio is 11.89, which indicates a very decent valuation of WEN.
  • 79.37% of the companies in the same industry are more expensive than WEN, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, WEN is valued a bit cheaper.
Industry RankSector Rank
PE 7.87
Fwd PE 11.89
WEN Price Earnings VS Forward Price EarningsWEN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, WEN is valued a bit cheaper than the industry average as 74.60% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, WEN is valued cheaper than 96.03% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.5
EV/EBITDA 8.65
WEN Per share dataWEN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

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)0.84
EPS Next 2Y-13.26%
EPS Next 3Y-5.2%

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

6

5. WEN Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 8.24%, WEN is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.14, WEN pays a better dividend. On top of this WEN pays more dividend than 100.00% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, WEN pays a better dividend.
Industry RankSector Rank
Dividend Yield 8.24%

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
WEN Yearly Dividends per shareWEN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • WEN pays out 78.50% 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.
DP78.5%
EPS Next 2Y-13.26%
EPS Next 3Y-5.2%
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 2025 100M 200M 300M 400M
WEN Dividend Payout.WEN Dividend Payout, showing the Payout Ratio.WEN Dividend Payout.PayoutRetained Earnings

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WEN Fundamentals: All Metrics, Ratios and Statistics

WENDY'S CO/THE

NASDAQ:WEN (4/7/2026, 10:19:05 AM)

7.005

-0.08 (-1.2%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-13
Earnings (Next)04-30
Inst Owners92.99%
Inst Owner Change0%
Ins Owners8.89%
Ins Owner Change0.19%
Market Cap1.33B
Revenue(TTM)2.18B
Net Income(TTM)165.07M
Analysts55.43
Price Target8.18 (16.77%)
Short Float %21.05%
Short Ratio3.92
Dividend
Industry RankSector Rank
Dividend Yield 8.24%
Yearly Dividend0.66
Dividend Growth(5Y)14.01%
DP78.5%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-02
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)-18.52%
EPS NQ rev (1m)-2.9%
EPS NQ rev (3m)-45.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-33.39%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-3.48%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.33%
Valuation
Industry RankSector Rank
PE 7.87
Fwd PE 11.89
P/S 0.61
P/FCF 5.5
P/OCF 3.87
P/B 11.36
P/tB N/A
EV/EBITDA 8.65
EPS(TTM)0.89
EY12.71%
EPS(NY)0.59
Fwd EY8.41%
FCF(TTM)1.27
FCFY18.19%
OCF(TTM)1.81
OCFY25.84%
SpS11.44
BVpS0.62
TBVpS-9.6
PEG (NY)N/A
PEG (5Y)0.84
Graham Number3.51
Profitability
Industry RankSector 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 RankSector 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 1.03
F-Score4
WACC5.99%
ROIC/WACC0.91
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-13.26%
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 Year1.74%
Revenue Next 2Y1.34%
Revenue Next 3Y1.87%
Revenue Next 5Y1.89%
EBIT growth 1Y-8.02%
EBIT growth 3Y1.47%
EBIT growth 5Y4.11%
EBIT Next Year32.27%
EBIT Next 3Y12.43%
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 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%.