(WEN) The Wendy’s - Overview
Sector: Consumer Cyclical | Industry: Restaurants | Exchange: NASDAQ (USA) | Market Cap: 1.278m USD | Total Return: -37.4% in 12m
Avg Turnover: 77.0M
EPS Trend: -53.5%
Qual. Beats: -1
Rev. Trend: 43.7%
Qual. Beats: 3
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
The Wendy’s Company (WEN) operates as a global quick-service restaurant franchisor, managing a diverse portfolio of domestic and international locations. The business model relies heavily on a franchised structure, which allows for capital-light expansion and consistent royalty streams while maintaining corporate control over core segments like real estate and development.
The company’s menu strategy focuses on product differentiation through fresh beef and versatile daypart offerings, including a dedicated breakfast segment. In the quick-service restaurant (QSR) sector, real estate ownership is a strategic lever, providing companies with rental income and greater control over site selection in competitive markets.
As of late 2025, the company maintained over 7,300 total units across 38 foreign countries and the United States. For a deeper look at the metrics driving this valuation, consider reviewing the latest data on ValueRay.
- Breakfast daypart expansion drives incremental same-store sales and revenue growth
- International unit development accelerates global franchise royalty and advertising income
- High labor and commodity costs pressure company-operated restaurant operating margins
- Digital sales and loyalty program adoption enhance customer frequency and data monetization
- Strategic real estate ownership and leasing provide stable cash flow and asset value
| Net Income: 171.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA -0.49 > 1.0 |
| NWC/Revenue: 13.50% < 20% (prev 9.43%; Δ 4.07% < -1%) |
| CFO/TA 0.06 > 3% & CFO 318.5m > Net Income 171.5m |
| Net Debt (5.03b) to EBITDA (503.4m): 9.99 < 3 |
| Current Ratio: 1.83 > 1.5 & < 3 |
| Outstanding Shares: last quarter (190.5m) vs 12m ago -5.49% < -2% |
| Gross Margin: 26.29% > 18% (prev 35.39%; Δ -9.09% > 0.5%) |
| Asset Turnover: 44.58% > 50% (prev 45.44%; Δ -0.86% > 0%) |
| Interest Coverage Ratio: 2.54 > 6 (EBIT TTM 327.9m / Interest Expense TTM 129.1m) |
| A: 0.06 (Total Current Assets 652.3m - Total Current Liabilities 356.2m) / Total Assets 4.92b |
| B: 0.09 (Retained Earnings 431.2m / Total Assets 4.92b) |
| C: 0.07 (EBIT TTM 327.9m / Avg Total Assets 4.92b) |
| D: 0.02 (Book Value of Equity 115.6m / Total Liabilities 4.81b) |
| Altman-Z'' = 1.15 = BB |
| DSRI: 1.24 (Receivables 125.1m/102.5m, Revenue 2.19b/2.24b) |
| GMI: 1.35 (GM 35.39% / 26.29%) |
| AQI: 0.99 (AQ_t 0.49 / AQ_t-1 0.50) |
| SGI: 0.98 (Revenue 2.19b / 2.24b) |
| TATA: -0.03 (NI 171.5m - CFO 318.5m) / TA 4.92b) |
| Beneish M = -2.54 (Cap -4..+1) = A |
As of June 08, 2026, the stock is trading at USD 6.71 with a total of 10,330,838 shares traded.
Over the past week, the price has changed by -11.24%,
over one month by -1.66%,
over three months by -5.99% and
over the past year by -37.38%.
The Wendy’s has received a consensus analysts rating of 3.28. Therefore, it is recommended to hold WEN.
- StrongBuy: 5
- Buy: 2
- Hold: 19
- Sell: 2
- StrongSell: 1
| Analysts Target Price | 7.8 | 16.8% |
P/E Trailing = 8.7143
P/E Forward = 11.5741
P/S = 0.5825
P/B = 11.0611
P/EG = 1.1569
Revenue TTM = 2.19b USD
EBIT TTM = 327.9m USD
EBITDA TTM = 503.4m USD
Long Term Debt = 2.72b USD (from longTermDebt, last quarter)
Short Term Debt = 109.4m USD (from shortTermDebt, last quarter)
Debt = 5.48b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.36b
Net Debt = 5.03b USD (calculated: Debt 5.48b - CCE 447.2m)
Enterprise Value = 6.31b USD (1.28b + Debt 5.48b - CCE 447.2m)
Interest Coverage Ratio = 2.54 (Ebit TTM 327.9m / Interest Expense TTM 129.1m)
EV/FCF = 28.37x (Enterprise Value 6.31b / FCF TTM 222.4m)
FCF Yield = 3.52% (FCF TTM 222.4m / Enterprise Value 6.31b)
FCF Margin = 10.14% (FCF TTM 222.4m / Revenue TTM 2.19b)
Net Margin = 7.81% (Net Income TTM 171.5m / Revenue TTM 2.19b)
Gross Margin = 26.29% ((Revenue TTM 2.19b - Cost of Revenue TTM 1.62b) / Revenue TTM)
Gross Margin QoQ = 24.69% (prev 24.21%)
Tobins Q-Ratio = 1.28 (Enterprise Value 6.31b / Total Assets 4.92b)
Interest Expense / Debt = 2.36% (Interest Expense 129.1m / Debt 5.48b)
Taxrate = 16.97% (35.0m / 206.5m)
NOPAT = 272.3m (EBIT 327.9m * (1 - 16.97%))
Current Ratio = 1.83 (Total Current Assets 652.3m / Total Current Liabilities 356.2m)
Debt / Equity = 47.41 (Debt 5.48b / totalStockholderEquity, last quarter 115.6m)
Debt / EBITDA = 9.99 (Net Debt 5.03b / EBITDA 503.4m)
Debt / FCF = 22.62 (Net Debt 5.03b / FCF TTM 222.4m)
Total Stockholder Equity = 113.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.48% (Net Income 171.5m / Total Assets 4.92b)
RoE = 150.7% (Net Income TTM 171.5m / Total Stockholder Equity 113.8m)
RoCE = 11.55% (EBIT 327.9m / Capital Employed (Equity 113.8m + L.T.Debt 2.72b))
RoIC = 5.96% (NOPAT 272.3m / Invested Capital 4.57b)
WACC = 2.94% (E(1.28b)/V(6.76b) * Re(7.14%) + D(5.48b)/V(6.76b) * Rd(2.36%) * (1-Tc(0.17)))
Discount Rate = 7.14% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -93.21 | Cagr: -3.73%
[DCF] Terminal Value 74.02% ; FCFF base≈231.8m ; Y1≈214.0m ; Y5≈191.6m
[DCF] Fair Price = N/A (negative equity: EV 3.04b - Net Debt 5.03b = -1.99b; debt exceeds intrinsic value)
EPS Correlation: -53.52 | EPS CAGR: -3.49% | SUE: -2.96 | # QB: -1
Revenue Correlation: 43.67 | Revenue CAGR: 0.58% | SUE: 2.66 | # QB: 3
EPS current Quarter (2026-06-30): EPS=0.17 | Chg30d=-9.49% | Revisions=-77% | Analysts=23
EPS next Quarter (2026-09-30): EPS=0.14 | Chg30d=-8.50% | Revisions=-73% | Analysts=23
EPS current Year (2026-12-31): EPS=0.57 | Chg30d=-0.36% | Revisions=-22% | GrowthEPS=-34.8% | GrowthRev=+2.1%
EPS next Year (2027-12-31): EPS=0.64 | Chg30d=-0.40% | Revisions=-30% | GrowthEPS=+11.7% | GrowthRev=+0.3%
[Analyst] Revisions Ratio: -77%