WEN Stock Analysis: The Wendy’s | NASDAQ
Restaurants | NASDAQ, USA | Market Cap: 1.486m USD | 12M Return: -18.6% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 105M
EPS Trend: -53.5%
Qual. Beats: 1
Rev. Trend: 43.7%
Qual. Beats: 3
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 10.5 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 (NASDAQ: WEN) operates, develops, and franchises a global system of quick-service restaurants (QSRs) through three reporting segments: Wendys U.S., Wendys International, and Global Real Estate & Development. As of December 28, 2025, the system included 5,969 Wendys restaurants in the United States and 1,428 locations across 38 foreign countries and U.S. territories. The menu centers on hamburgers, chicken sandwiches and nuggets, chili, fries, baked potatoes, salads, the Frosty dessert, and a breakfast lineup that features the Breakfast Baconator, supplemented by limited-time promotional items. In addition to franchising, the company owns and leases real estate associated with its restaurant locations, which serves as an additional revenue stream beyond company-operated store sales and franchise royalties.
Wendys operates within the Consumer Discretionary sector (GICS Sub-Industry: Restaurants), a highly competitive segment that includes burger-focused QSR peers such as McDonalds and Burger King. Like many large QSR operators, the company relies predominantly on a franchise-driven model, in which franchisees pay royalties and lease fees while the parent company retains control of brand standards, marketing, and menu development. The real estate segment is a notable differentiator, as holding title to restaurant properties allows the company to collect rental income and benefit from property appreciation, providing a margin buffer against the typically thin operating margins of the QSR industry. The company was founded in 1969, is headquartered in Dublin, Ohio, and adopted its current name in July 2011 after previously operating as Wendys/Arbys Group, Inc.
- US same-store sales decline as value-seeking consumer pulls back
- Beef commodity inflation pressures restaurant level margins
- Breakfast daypart and digital sales drive incremental traffic growth
| Net Income: 148.6m 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 148.6m |
| Net Debt (5.03b) to EBITDA (511.1m): 9.84 < 3 |
| Current Ratio: 1.83 > 1.5 & < 3 |
| Outstanding Shares: last quarter (190.5m) vs 12m ago -5.49% < -2% |
| Gross Margin: 26.52% > 18% (prev 35.39%; Δ -8.87% > 0.5%) |
| Asset Turnover: 44.58% > 50% (prev 45.44%; Δ -0.86% > 0%) |
| Interest Coverage Ratio: 2.60 > 6 (EBIT TTM 335.6m / 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 335.6m / Avg Total Assets 4.92b) |
| D: 0.02 (Book Value of Equity 115.6m / Total Liabilities 4.81b) |
| Altman-Z'' = 1.16 = BB |
| DSRI: 1.24 (Receivables 125.1m/102.5m, Revenue 2.19b/2.24b) |
| GMI: 1.33 (GM 35.39% / 26.52%) |
| AQI: 0.99 (AQ_t 0.49 / AQ_t-1 0.50) |
| SGI: 0.98 (Revenue 2.19b / 2.24b) |
| TATA: -0.03 (NI 148.6m - CFO 318.5m) / TA 4.92b) |
| Beneish M = -2.55 (Cap -4..+1) = A |
As of July 06, 2026, the stock is trading at USD 8.60 with a total of 30,494,100 shares traded. Over the past week, the price has changed by +17.33%, over one month by +28.17%, over three months by +23.54% and over the past year by -18.60%.
Current recommended Stop Loss: 7.70 (which is 10.5% or 1.4 ATR below the current price).
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 | -9.4% |
P/E Trailing = 10.1299
P/E Forward = 13.459
P/S = 0.6772
P/B = 12.8744
P/EG = 1.3466
Revenue TTM = 2.19b USD
EBIT TTM = 335.6m USD
EBITDA TTM = 511.1m 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 = 6.52b USD (1.49b + Debt 5.48b - CCE 447.2m)
Interest Coverage Ratio = 2.60 (Ebit TTM 335.6m / Interest Expense TTM 129.1m)
EV/FCF = 29.31x (Enterprise Value 6.52b / FCF TTM 222.4m)
FCF Yield = 3.41% (FCF TTM 222.4m / Enterprise Value 6.52b)
FCF Margin = 10.14% (FCF TTM 222.4m / Revenue TTM 2.19b)
Net Margin = 6.77% (Net Income TTM 148.6m / Revenue TTM 2.19b)
Gross Margin = 26.52% ((Revenue TTM 2.19b - Cost of Revenue TTM 1.61b) / Revenue TTM)
Gross Margin QoQ = 25.60% (prev 24.21%)
Tobins Q-Ratio = 1.32 (Enterprise Value 6.52b / Total Assets 4.92b)
Interest Expense / Debt = 2.36% (Interest Expense 129.1m / Debt 5.48b)
Taxrate = 28.06% (57.9m / 206.5m)
NOPAT = 241.4m (EBIT 335.6m * (1 - 28.06%))
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 = 9.84 (Net Debt 5.03b / EBITDA 511.1m)
Debt / FCF = 22.62 (Net Debt 5.03b / FCF TTM 222.4m)
Total Stockholder Equity = 113.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.02% (Net Income 148.6m / Total Assets 4.92b)
RoE = 130.6% (Net Income TTM 148.6m / Total Stockholder Equity 113.8m)
RoCE = 11.82% (EBIT 335.6m / Capital Employed (Equity 113.8m + L.T.Debt 2.72b))
RoIC = 5.29% (NOPAT 241.4m / Invested Capital 4.57b)
WACC = 2.91% (E(1.49b)/V(6.96b) * Re(7.38%) + D(5.48b)/V(6.96b) * Rd(2.36%) * (1-Tc(0.28)))
Discount Rate = 7.38% (= 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: 1.08 | # 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=-0.54% | Revisions=-80% | Analysts=23
EPS next Quarter (2026-09-30): EPS=0.14 | Chg30d=-0.28% | Revisions=-76% | Analysts=23
EPS current Year (2026-12-31): EPS=0.57 | Chg30d=-0.49% | Revisions=-23% | GrowthEPS=-34.9% | GrowthRev=+2.1%
EPS next Year (2027-12-31): EPS=0.64 | Chg30d=-0.06% | Revisions=-35% | GrowthEPS=+11.8% | GrowthRev=+0.3%
[Analyst] Revisions Ratio: -61% (up=14, down=62)