Wendy's Co

Consumer Discretionary
Restaurants
www.wendys.com

Earnings Score
Safety Score

Market Cap $2.20B
PE 11
Debt $2.81B
Cash $388.96M
EV $4.62B
FCF $246.02M

Earnings

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Sales & Net Margins

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Earnings	$191.60M
EBIT	$373.33M
ROE	147%
ROA	8%
FCF	$246.02M
Equity	$130.24M
Growth Stability	45%
PE	11.46
PEG	1.06
PB	16.86
P/FCF	8.92
P/S	0.98
Price/Cash	0.18
Debt/Equity	21.6
Debt/FCF	11.43
Net Margins	7%
Gross Margins	65%
Op. Margins	17%
Earnings CAGR	2%
Sales Growth YoY	-2%
Sales Growth QoQ	-9%
Sales CAGR	7%
FCF CAGR	16%
Equity CAGR	-11%
Earnings Stability	0.01
Earnings Growth YoY	-7%
Earnings Growth QoQ	-17%

Earnings CAGR 5Y	11%
Sales CAGR 5Y	7%
FCF CAGR 5Y	8%
Equity CAGR 5Y	-19%
Earnings CAGR 3Y	4%
Sales CAGR 3Y	4%
FCF CAGR 3Y	18%
Equity CAGR 3Y	-29%
Market Cap	$2.20B
Revenue	$2.24B
Dividend Yield	9%
Payout Ratio	106%
Assets	$4.92B
Total Debt	$2.81B
Cash	$388.96M
Shares Outstanding	195.85M
EV	4.62B
Earnings Score	6%
Safety Score	31%
Working Capital	210.69M
Current Ratio	1.49
Gross Profit	$1.46B
Shares Growth 3y	-3%
Equity Growth QoQ	-50%
Equity Growth YoY	-56%

Assets & ROA

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Stockholders Equity & ROE

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The Wendy's Company is the second-largest burger quick-service restaurant, or QSR, chain in the United States by systemwide sales, with $11.1 billion in 2021, narrowly edging Burger King ($10.3 billion) and clocking in well behind wide-moat McDonald's ($45.7 billion). After divestitures of Tim Horton's (2006) and Arby's (2011), the firm manages just the burger banner, generating sales across a footprint that spans almost 7,000 total units in 30 countries. Wendy's generates revenue from the sale of hamburgers, chicken sandwiches, salads, and fries throughout its company-owned footprint, through franchise royalty and marketing fund payments remitted by its franchisees, which account for 94% of stores, and through franchise flipping and advisory fees.

SEC Filings

Direct access to Wendy's Co (WEN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Mar 30
2024
- 10-K Dec 29
- 10-Q Sep 29
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Oct 01
- 10-Q Jul 02
- 10-Q Apr 02
- 10-K Jan 01

Sector Comparison

How does Wendy's Co compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Wendy's Co compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 2%

Stability 1%

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Wendy's Co Discounted Cash Flow

Fully customizable DCF calculator online for Wendy's Co.

Years

Calculation mode

= $7.7B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$246M	$286M	$333M	$387M	$450M	$523M	$609M	$708M	$823M	$958M	$1.1B	$11B
DCF		$260M	$275M	$291M	$307M	$325M	$344M	$363M	$384M	$406M	$429M	$4.3B
Value	$7.7B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	01/2022	12/2022	12/2023	12/2024	TTM
Net Margins	9%	9%	16%	29%	8%	7%	11%	8%	9%	9%	7%
ROA	-	8%	5%	13%	5%	5%	7%	6%	7%	7%	8%
ROE	-	25%	34%	71%	27%	21%	46%	38%	66%	75%	147%

Net Margins (7.49%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	01/2022	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	82.3	16.61	18.51	10.93	10.73	9.14	16.78	10.85	10.91	11.43
Debt over Equity	3.32	4.89	4.92	4.41	4.54	4.21	5.61	6.28	9.12	10.97	21.6
Growth Stability	-	-	-	100%	52%	45%	84%	100%	100%	100%	45%

Bad Debt/FCF ratio (11.43)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (21.6)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (45%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	01/2022	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	-23%	-15%	30%	7%	1%	9%	10%	4%	3%	7%
Earnings YoY growth	-	-20%	50%	137%	-70%	-14%	70%	-11%	15%	-5%	11%
Equity YoY growth	-	-30%	9%	13%	-20%	6%	-21%	7%	-33%	-16%	-19%
FCF YoY growth	-	-180%	441%	-9%	39%	0%	24%	-35%	49%	0%	8%