WEN Stock Analysis: The Wendy’s | NASDAQ
Restaurants | NASDAQ, USA | Market Cap: 1.167m USD | 12M Return: -24.9% | US95058W1009 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 36.5M
EPS Trend: -70.3%
Qual. Beats: 5
Rev. Trend: 22.9%
Qual. Beats: 4
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
The Wendys Company (WEN) is a Dublin, Ohio-based quick-service restaurant operator and franchisor that runs three reporting segments: Wendys U.S., Wendys International, and Global Real Estate & Development. Its menu centers on hamburgers, chicken sandwiches and nuggets, sides like chili, fries, baked potatoes, and Frosty desserts, plus a breakfast offering. The company both operates and franchises its restaurants, and also owns and leases real estate tied to the system. As of late 2025, the Wendys system totaled 5,969 U.S. restaurants plus 1,428 locations across 38 foreign countries and U.S. territories. Founded in 1969, the company was previously known as Wendys/Arbys Group, Inc. before adopting its current name in July 2011.
The quick-service restaurant industry is overwhelmingly franchise-driven, with operators like Wendys earning revenue from a combination of company-operated sales, royalty and advertising fees from franchisees, and-uniquely among most QSR peers-rental income from real estate it owns and leases back to franchisees, which is reflected in its dedicated Global Real Estate & Development segment. Wendys is classified in the Consumer Discretionary sector under the Restaurants sub-industry and trades on NASDAQ as a small-cap stock.
- Beef and commodity costs pressure restaurant-level margins
- Breakfast daypart expansion drives U.S. same-store sales
- McDonalds value meal competition pressures QSR traffic
| Net Income: 126.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 0.16 > 1.0 |
| NWC/Revenue: 14.55% < 20% (prev 8.32%; Δ 6.23% < -1%) |
| CFO/TA 0.07 > 3% & CFO 358.5m > Net Income 126.1m |
| Net Debt (5.05b) to EBITDA (488.2m): 10.35 < 3 |
| Current Ratio: 1.90 > 1.5 & < 3 |
| Outstanding Shares: last quarter (191.2m) vs 12m ago -0.78% < -2% |
| Gross Margin: 27.23% > 18% (prev 35.72%; Δ -8.49% > 0.5%) |
| Asset Turnover: 45.07% > 50% (prev 45.47%; Δ -0.40% > 0%) |
| Interest Coverage Ratio: 2.36 > 6 (EBIT TTM 311.2m / Interest Expense TTM 132.0m) |
| A: 0.07 (Total Current Assets 678.1m - Total Current Liabilities 357.5m) / Total Assets 4.88b |
| B: 0.09 (Retained Earnings 437.1m / Total Assets 4.88b) |
| C: 0.06 (EBIT TTM 311.2m / Avg Total Assets 4.89b) |
| D: 0.03 (Book Value of Equity 120.5m / Total Liabilities 4.76b) |
| Altman-Z'' = 1.18 = BB |
| DSRI: 0.96 (Receivables 109.2m/115.1m, Revenue 2.20b/2.23b) |
| GMI: 1.31 (GM 35.72% / 27.23%) |
| AQI: 1.35 (AQ_t 0.68 / AQ_t-1 0.50) |
| SGI: 0.99 (Revenue 2.20b / 2.23b) |
| TATA: -0.05 (NI 126.1m - CFO 358.5m) / TA 4.88b) |
| Beneish M = -2.58 (Cap -4..+1) = A |
As of October 12, 2026, the stock is trading at USD 6.23 with a total of 5,061,803 shares traded. Over the past week, the price has changed by +1.80%, over one month by -17.37%, over three months by -17.22% and over the past year by -24.93%.
Current recommended Stop Loss: 5.80 (which is 6.9% or 1.6 ATR below the current price).
The Wendy’s has received a consensus analysts rating of 2.92. Therefore, it is recommended to hold WEN.
- StrongBuy: 3
- Buy: 0
- Hold: 16
- Sell: 2
- StrongSell: 3
| Analysts Target Price | 7.6 | 21.5% |
P/E Trailing = 9.2727
P/E Forward = 12.4069
P/S = 0.5295
P/B = 10.7944
P/EG = 1.24
Revenue TTM = 2.20b USD
EBIT TTM = 311.2m USD
EBITDA TTM = 488.2m USD
Long Term Debt = 2.72b USD (from longTermDebt, last quarter)
Short Term Debt = 109.2m USD (from shortTermDebt, last quarter)
Debt = 5.40b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.32b
Net Debt = 5.05b USD (calculated: Debt 5.40b - CCE 341.2m)
Enterprise Value = 6.22b USD (1.17b + Debt 5.40b - CCE 341.2m)
Interest Coverage Ratio = 2.36 (Ebit TTM 311.2m / Interest Expense TTM 132.0m)
EV/FCF = 23.55x (Enterprise Value 6.22b / FCF TTM 264.2m)
FCF Yield = 4.25% (FCF TTM 264.2m / Enterprise Value 6.22b)
FCF Margin = 11.99% (FCF TTM 264.2m / Revenue TTM 2.20b)
Net Margin = 5.72% (Net Income TTM 126.1m / Revenue TTM 2.20b)
Gross Margin = 27.23% ((Revenue TTM 2.20b - Cost of Revenue TTM 1.60b) / Revenue TTM)
Gross Margin QoQ = 32.39% (prev 25.60%)
Tobins Q-Ratio = 1.27 (Enterprise Value 6.22b / Total Assets 4.88b)
Interest Expense / Debt = 2.45% (Interest Expense 132.0m / Debt 5.40b)
Taxrate = 29.64% (53.1m / 179.2m)
NOPAT = 218.9m (EBIT 311.2m * (1 - 29.64%))
Current Ratio = 1.90 (Total Current Assets 678.1m / Total Current Liabilities 357.5m)
Debt / Equity = 44.79 (Debt 5.40b / totalStockholderEquity, last quarter 120.5m)
Debt / EBITDA = 10.35 (Net Debt 5.05b / EBITDA 488.2m)
Debt / FCF = 19.13 (Net Debt 5.05b / FCF TTM 264.2m)
Total Stockholder Equity = 115.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 2.58% (Net Income 126.1m / Total Assets 4.88b)
RoE = 109.0% (Net Income TTM 126.1m / Total Stockholder Equity 115.6m)
RoCE = 10.98% (EBIT 311.2m / Capital Employed (Equity 115.6m + L.T.Debt 2.72b))
RoIC = 4.84% (NOPAT 218.9m / Invested Capital 4.53b)
WACC = 2.76% (E(1.17b)/V(6.56b) * Re(7.55%) + D(5.40b)/V(6.56b) * Rd(2.45%) * (1-Tc(0.30)))
Discount Rate = 7.55% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -93.66 | Cagr: -3.46%
[DCF] Terminal Value 75.81% ; FCFF base≈261.3m ; Y1≈268.5m ; Y5≈298.1m
[DCF] Fair Price = N/A (negative equity: EV 4.61b - Net Debt 5.05b = -441.8m; debt exceeds intrinsic value)
EPS Correlation: -70.31 | EPS CAGR: -8.06% | SUE: 1.08 | # QB: 5
Revenue Correlation: 22.89 | Revenue CAGR: 0.26% | SUE: 1.32 | # QB: 4
EPS current Quarter (2026-09-30): EPS=0.10 | Chg30d=-2.74% | Revisions=-79% | Analysts=22
EPS current Year (2026-12-31): EPS=0.50 | Chg30d=-1.48% | Revisions=-50% | GrowthEPS=-43.2% | GrowthRev=+0.8%
EPS next Year (2027-12-31): EPS=0.52 | Chg30d=-2.61% | Revisions=-73% | GrowthEPS=+3.2% | GrowthRev=-0.5%
[Analyst] Revisions Ratio: -82% (up=2, down=34)