WENDY'S CO/THE (WEN) Stock Fundamental Analysis
NASDAQ:WEN - US95058W1009 - Common Stock
10.065 USD
+0.04 (+0.45%)
Overall WEN gets a fundamental rating of 5 out of 10. We evaluated WEN against 134 industry peers in the Hotels, Restaurants & Leisure industry. While WEN belongs to the best of the industry regarding profitability, there are concerns on its financial health. WEN is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
WEN had positive earnings in the past year.
WEN had a positive operating cash flow in the past year.
Each year in the past 5 years WEN has been profitable.
Each year in the past 5 years WEN had a positive operating cash flow.
1.2 Ratios
WEN's Return On Assets of 3.92% is in line compared to the rest of the industry. WEN outperforms 58.96% of its industry peers.
WEN has a better Return On Equity (170.14%) than 99.25% of its industry peers.
The Return On Invested Capital of WEN (6.16%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for WEN is significantly below the industry average of 16.00%.
The last Return On Invested Capital (6.16%) for WEN is above the 3 year average (5.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 170.14% | ||
| ROIC | 6.16% |
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
WEN has a Profit Margin of 8.63%. This is in the better half of the industry: WEN outperforms 69.40% of its industry peers.
WEN's Profit Margin has improved in the last couple of years.
The Operating Margin of WEN (17.15%) is better than 74.63% of its industry peers.
In the last couple of years the Operating Margin of WEN has remained more or less at the same level.
With a decent Gross Margin value of 63.17%, WEN is doing good in the industry, outperforming 76.12% of the companies in the same industry.
In the last couple of years the Gross Margin of WEN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.15% | ||
| PM (TTM) | 8.63% | ||
| GM | 63.17% |
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. Health
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.
WEN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WEN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.12, we must say that WEN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.12, WEN is not doing good in the industry: 65.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of WEN is 13.03, which is on the high side as it means it would take WEN, 13.03 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.03, WEN is in line with its industry, outperforming 52.24% of the companies in the same industry.
WEN has a Debt/Equity ratio of 28.74. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 28.74, WEN is doing worse than 69.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.74 | ||
| Debt/FCF | 13.03 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.82
WACC7.47%
2.3 Liquidity
WEN has a Current Ratio of 1.45. This is a normal value and indicates that WEN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WEN (1.45) is better than 71.64% of its industry peers.
WEN has a Quick Ratio of 1.43. This is a normal value and indicates that WEN is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.43, WEN is doing good in the industry, outperforming 74.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.02% over the past year.
WEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.13% yearly.
WEN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.31%.
The Revenue has been growing slightly by 5.62% on average over the past years.
EPS 1Y (TTM)1.02%
EPS 3Y6.84%
EPS 5Y11.13%
EPS Q2Q%7.41%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-1.72%
3.2 Future
The Earnings Per Share is expected to grow by 7.17% on average over the next years.
Based on estimates for the next years, WEN will show a small growth in Revenue. The Revenue will grow by 2.19% on average per year.
EPS Next Y-12.36%
EPS Next 2Y-2.32%
EPS Next 3Y1.81%
EPS Next 5Y7.17%
Revenue Next Year-3.68%
Revenue Next 2Y-0.31%
Revenue Next 3Y0.51%
Revenue Next 5Y2.19%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.17 indicates a reasonable valuation of WEN.
WEN's Price/Earnings ratio is rather cheap when compared to the industry. WEN is cheaper than 93.28% of the companies in the same industry.
When comparing the Price/Earnings ratio of WEN to the average of the S&P500 Index (26.84), we can say WEN is valued rather cheaply.
The Price/Forward Earnings ratio is 10.55, which indicates a very decent valuation of WEN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WEN indicates a rather cheap valuation: WEN is cheaper than 88.81% 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 (22.48), we can say WEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 10.55 |
4.2 Price Multiples
WEN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WEN is cheaper than 73.88% 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 96.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.47 | ||
| EV/EBITDA | 9.19 |
4.3 Compensation for Growth
The decent profitability rating of WEN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.91
EPS Next 2Y-2.32%
EPS Next 3Y1.81%
5. Dividend
5.1 Amount
WEN has a Yearly Dividend Yield of 8.94%, which is a nice return.
Compared to an average industry Dividend Yield of 4.09, WEN pays a better dividend. On top of this WEN pays more dividend than 97.01% 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.94% |
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
5.3 Sustainability
WEN pays out 92.71% 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.
DP92.71%
EPS Next 2Y-2.32%
EPS Next 3Y1.81%
NASDAQ:WEN (9/4/2025, 10:07:09 AM)
10.065
+0.04 (+0.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners91.75%
Inst Owner Change2.3%
Ins Owners8.78%
Ins Owner Change0.51%
Market Cap1.92B
Analysts65.45
Price Target11.76 (16.84%)
Short Float %10.76%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.94% |
Yearly Dividend1
Dividend Growth(5Y)32.37%
DP92.71%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.16%
Min EPS beat(2)-0.22%
Max EPS beat(2)12.55%
EPS beat(4)2
Avg EPS beat(4)3.16%
Min EPS beat(4)-1.97%
Max EPS beat(4)12.55%
EPS beat(8)4
Avg EPS beat(8)1.42%
EPS beat(12)8
Avg EPS beat(12)2.26%
EPS beat(16)11
Avg EPS beat(16)2.12%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.35%
Max Revenue beat(2)-0.56%
Revenue beat(4)2
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-1.35%
Max Revenue beat(4)0.88%
Revenue beat(8)2
Avg Revenue beat(8)-1.14%
Revenue beat(12)3
Avg Revenue beat(12)-1.13%
Revenue beat(16)4
Avg Revenue beat(16)-1.05%
PT rev (1m)-16.86%
PT rev (3m)-22.52%
EPS NQ rev (1m)-19.02%
EPS NQ rev (3m)-24.09%
EPS NY rev (1m)-8.8%
EPS NY rev (3m)-9.13%
Revenue NQ rev (1m)-3.48%
Revenue NQ rev (3m)-6.17%
Revenue NY rev (1m)-2.03%
Revenue NY rev (3m)-2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 10.55 | ||
| P/S | 0.86 | ||
| P/FCF | 7.47 | ||
| P/OCF | 5.39 | ||
| P/B | 16.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.19 |
EPS(TTM)0.99
EY9.84%
EPS(NY)0.95
Fwd EY9.48%
FCF(TTM)1.35
FCFY13.39%
OCF(TTM)1.87
OCFY18.55%
SpS11.68
BVpS0.59
TBVpS-9.63
PEG (NY)N/A
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 170.14% | ||
| ROCE | 8.52% | ||
| ROIC | 6.16% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 12.26% | ||
| OM | 17.15% | ||
| PM (TTM) | 8.63% | ||
| GM | 63.17% | ||
| FCFM | 11.54% |
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%
ROICexcg growth 3Y6.48%
ROICexcg 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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.74 | ||
| Debt/FCF | 13.03 | ||
| Debt/EBITDA | 5.99 | ||
| Cap/Depr | 62% | ||
| Cap/Sales | 4.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.75% | ||
| Profit Quality | 133.75% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 1.12 |
F-Score6
WACC7.47%
ROIC/WACC0.82
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)1.02%
EPS 3Y6.84%
EPS 5Y11.13%
EPS Q2Q%7.41%
EPS Next Y-12.36%
EPS Next 2Y-2.32%
EPS Next 3Y1.81%
EPS Next 5Y7.17%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-1.72%
Revenue Next Year-3.68%
Revenue Next 2Y-0.31%
Revenue Next 3Y0.51%
Revenue Next 5Y2.19%
EBIT growth 1Y2.22%
EBIT growth 3Y4.25%
EBIT growth 5Y6.41%
EBIT Next Year42.36%
EBIT Next 3Y15.24%
EBIT Next 5Y10.94%
FCF growth 1Y17.59%
FCF growth 3Y-0.86%
FCF growth 5Y4.01%
OCF growth 1Y17.36%
OCF growth 3Y0.91%
OCF growth 5Y4.22%