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

NASDAQ:WEN • US95058W1009

Current stock price

6.955 USD
-0.18 (-2.59%)
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.
  • WEN had positive earnings in each of the past 5 years.
  • In the past 5 years WEN always reported a positive cash flow from operatings.
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

  • 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.
  • WEN has a Return On Equity of 140.63%. This is amongst the best in the industry. WEN outperforms 99.21% of its industry peers.
  • The Return On Invested Capital of WEN (5.43%) is comparable to the rest of the industry.
  • 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 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

  • Looking at the Profit Margin, with a value of 7.58%, WEN is in the better half of 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 has a Operating Margin of 15.96%. This is in the better half of the industry: WEN outperforms 72.22% of its industry peers.
  • 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 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.
  • WEN has a worse debt/assets ratio than last year.
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

  • Based on the Altman-Z score of 1.03, we must say that WEN is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.03, WEN is doing worse than 64.29% of the companies in the same industry.
  • 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.
  • WEN has a Debt to FCF ratio of 14.15. This is comparable to the rest of the industry: WEN outperforms 47.62% of its industry peers.
  • WEN has a Debt/Equity ratio of 28.77. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of WEN (28.77) is worse than 74.60% of its industry peers.
Industry RankSector Rank
Debt/Equity 28.77
Debt/FCF 14.15
Altman-Z 1.03
ROIC/WACC0.88
WACC6.19%
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.
  • With an excellent Quick ratio value of 1.74, WEN belongs to the best of the industry, outperforming 80.16% of the companies in the same industry.
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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3

3. WEN Growth Analysis

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.
  • WEN shows a decrease in Revenue. In the last year, the revenue decreased by -3.10%.
  • 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

  • The Earnings Per Share is expected to grow by 1.08% on average over the next years.
  • The Revenue is expected to grow by 1.81% on average over the next years.
EPS Next Y-33.83%
EPS Next 2Y-13.31%
EPS Next 3Y-5.2%
EPS Next 5Y1.08%
Revenue Next Year1.64%
Revenue Next 2Y1.29%
Revenue Next 3Y1.82%
Revenue Next 5Y1.81%

3.3 Evolution

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

4. WEN Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 7.81, the valuation of WEN can be described as very cheap.
  • WEN's Price/Earnings ratio is rather cheap when compared to the industry. WEN is cheaper than 94.44% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, WEN is valued rather cheaply.
  • The Price/Forward Earnings ratio is 11.81, which indicates a very decent valuation of WEN.
  • WEN's Price/Forward Earnings ratio is rather cheap when compared to the industry. WEN is cheaper than 83.33% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of WEN to the average of the S&P500 Index (22.29), we can say WEN is valued slightly cheaper.
Industry RankSector Rank
PE 7.81
Fwd PE 11.81
WEN Price Earnings VS Forward Price EarningsWEN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • 73.02% of the companies in the same industry are more expensive than WEN, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, WEN is valued cheaper than 96.83% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.46
EV/EBITDA 8.67
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.
  • 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-13.31%
EPS Next 3Y-5.2%

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6

5. WEN Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 8.08%, WEN is a good candidate for dividend investing.
  • WEN's Dividend Yield is rather good when compared to the industry average which is at 1.04. WEN pays more dividend than 100.00% of the companies in the same industry.
  • WEN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 8.08%

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.
  • WEN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP78.5%
EPS Next 2Y-13.31%
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 (4/27/2026, 2:39:41 PM)

6.955

-0.18 (-2.59%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-13
Earnings (Next)05-08
Inst Owners92.99%
Inst Owner Change-0.37%
Ins Owners8.97%
Ins Owner Change0.23%
Market Cap1.32B
Revenue(TTM)2.18B
Net Income(TTM)165.07M
Analysts55.43
Price Target8.18 (17.61%)
Short Float %21.84%
Short Ratio4.04
Dividend
Industry RankSector Rank
Dividend Yield 8.08%
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)-16.87%
EPS NQ rev (1m)-2.66%
EPS NQ rev (3m)-45.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-32.87%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-3.78%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.37%
Valuation
Industry RankSector Rank
PE 7.81
Fwd PE 11.81
P/S 0.61
P/FCF 5.46
P/OCF 3.84
P/B 11.29
P/tB N/A
EV/EBITDA 8.67
EPS(TTM)0.89
EY12.8%
EPS(NY)0.59
Fwd EY8.47%
FCF(TTM)1.27
FCFY18.31%
OCF(TTM)1.81
OCFY26.01%
SpS11.43
BVpS0.62
TBVpS-9.59
PEG (NY)N/A
PEG (5Y)0.84
Graham Number3.51298 (-49.49%)
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
WACC6.19%
ROIC/WACC0.88
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 5Y1.08%
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 5Y1.81%
EBIT growth 1Y-8.02%
EBIT growth 3Y1.47%
EBIT growth 5Y4.11%
EBIT Next Year32.25%
EBIT Next 3Y12.44%
EBIT Next 5Y7.91%
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%.