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

NASDAQ:WEN • US95058W1009

8.09 USD
-0.23 (-2.76%)
At close: Feb 20, 2026
8.1 USD
+0.01 (+0.12%)
After Hours: 2/20/2026, 8:10:25 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

WEN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 126 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of WEN while its profitability can be described as average. 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

  • In the past year WEN was profitable.
  • WEN had a positive operating cash flow in the past year.
  • 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.
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

  • The Return On Assets of WEN (3.74%) is comparable to the rest of the industry.
  • WEN's Return On Equity of 170.42% is amongst the best of the industry. WEN outperforms 99.21% of its industry peers.
  • WEN has a Return On Invested Capital (6.67%) which is comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years 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 has a Profit Margin of 8.43%. This is in the better half of the industry: WEN outperforms 68.25% of its industry peers.
  • In the last couple of years the Profit Margin of WEN has grown nicely.
  • WEN's Operating Margin of 17.49% is fine compared to the rest of the industry. WEN outperforms 74.60% of its industry peers.
  • WEN's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of WEN (62.41%) is better than 77.78% 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 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.
  • WEN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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

  • WEN has an Altman-Z score of 0.98. 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 0.98. This is in the lower half of the industry: WEN underperforms 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.
  • WEN has a Debt to FCF ratio of 14.24. This is comparable to the rest of the industry: WEN outperforms 50.79% of its industry peers.
  • 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 0.98
ROIC/WACC1.05
WACC6.34%
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

  • A Current Ratio of 0.81 indicates that WEN may have some problems paying its short term obligations.
  • WEN's Current ratio of 0.81 is on the low side compared to the rest of the industry. WEN is outperformed by 61.11% of its industry peers.
  • A Quick Ratio of 0.80 indicates that WEN may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.80, WEN perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
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.
  • 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.
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

  • Based on estimates for the next years, WEN will show a small growth in Earnings Per Share. The EPS will grow by 6.90% on average per year.
  • 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

  • WEN is valuated reasonably with a Price/Earnings ratio of 9.09.
  • Compared to the rest of the industry, the Price/Earnings ratio of WEN indicates a rather cheap valuation: WEN is cheaper than 89.68% of the companies listed in the same industry.
  • WEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.99.
  • Based on the Price/Forward Earnings ratio of 9.29, the valuation of WEN can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, WEN is valued cheaper than 88.89% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 28.06. WEN is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.09
Fwd PE 9.29
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

  • Based on the Enterprise Value to EBITDA ratio, WEN is valued a bit cheaper than the industry average as 76.19% 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 6.47
EV/EBITDA 8.53
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)0.98
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.
  • Compared to an average industry Dividend Yield of 1.10, WEN pays a better dividend. On top of this WEN pays more dividend than 99.21% 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 1.85.
Industry RankSector Rank
Dividend Yield 7.05%

5.2 History

  • On average, the dividend of WEN grows each year by 32.37%, which is quite nice.
  • WEN has paid a dividend for at least 10 years, which is 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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WENDY'S CO/THE

NASDAQ:WEN (2/20/2026, 8:10:25 PM)

After market: 8.1 +0.01 (+0.12%)

8.09

-0.23 (-2.76%)

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 Cap1.54B
Revenue(TTM)N/A
Net Income(TTM)186.09M
Analysts56.11
Price Target9.76 (20.64%)
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 9.09
Fwd PE 9.29
P/S 0.7
P/FCF 6.47
P/OCF 4.48
P/B 14.1
P/tB N/A
EV/EBITDA 8.53
EPS(TTM)0.89
EY11%
EPS(NY)0.87
Fwd EY10.77%
FCF(TTM)1.25
FCFY15.44%
OCF(TTM)1.81
OCFY22.33%
SpS11.6
BVpS0.57
TBVpS-9.68
PEG (NY)N/A
PEG (5Y)0.98
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 0.98
F-Score6
WACC6.34%
ROIC/WACC1.05
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 9.09 and the Price/Book (PB) ratio is 14.1.


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%.