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Wendy's Company (The) (WEN)

Undervalued
Consumer CyclicalRestaurantsUnited States

Fundamental

69

Price

$6.37

Market Cap

$1.22B

Part 1 · What the company is worth

Overview

The Wendy's Company, together with its subsidiaries, engages in the operation, development, and franchising of a system of quick-service restaurants in the United States and internationally. The company operates through the Wendy's U.S., Wendy's International, and Global Real Estate & Development segments. Its restaurants offer a menu that includes hamburger sandwiches and chicken sandwiches; chicken tenders and nuggets, chili, french fries, baked potatoes, salads, soft drinks, Frosty desserts, and kids' meals; breakfast menu, including the Breakfast Baconator sandwich and seasoned products; and a variety of promotional products on a limited time basis. The company also owns and leases real estate properties. As of December 28, 2025, there were 5,969 Wendy's restaurants in operation in the United States and 1,428 Wendy's restaurants in operation in 38 foreign countries and U.S. territories. The company was formerly known as Wendy's/Arby's Group, Inc. and changed its name to The Wendy's Company in July 2011. The Wendy's Company was founded in 1969 and is headquartered in Dublin, Ohio.

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Direct competitors

Who this company fights with for the same customers

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No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$2.20B

Trailing 12 months (through 6/28/2026)

Net Income

$126M

Trailing 12 months (through 6/28/2026)

Free Cash Flow

$243M

Total Equity

$117M

Total Liabilities

$4.84B

Current Ratio

1.90

Interest Coverage

2.27

Debt/EBITDA

8.22

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseUndervalued

Fair Value

$17.76

Current Price

$6.37

Margin of Safety

+64.2%

Fair Value Range

$11.55 - $23.98

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$7.57
Discounted cash flow (DCF):$41.43
Earnings multiple (P/E):$8.66
Graham growth formula:$17.12
Earnings power value (EPV):$15.48
Justified P/B:$16.19
Dividend discount (Gordon):$17.10
P/FFO, funds from operations:$26.63
Mid-cycle earnings:$24.43
Revenue multiple:$19.75
Analyst Consensus:Hold (4B / 19H / 10S)
Last Earnings Surprise:+8.37%

Valuation Metrics

P/E Ratio

9.67

ROE

140.6%

P/B Ratio

10.10

P/FCF

4.60

Gross Margin

63.0%

ROIC

5.2%

Profitability Radar

Value Creation (Economic Moat)

ROIC

5.2%

WACC

3.8%

ROIC − WACC

+1.5 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (16)

  • EPS shows upward trend
  • EPS CAGR 32.00%
  • ROIC 5.2%
  • Gross Margin 63.0%
  • P/FCF 4.60
  • Operating Margin 13.6%
  • Positive Free Cash Flow
  • Current Ratio
  • Interest Coverage
  • Return on Tangible Assets
  • DCF valuation (Undervalued)
  • ROE 109.0%
  • Earnings Surprise avg 15.9%
  • PEG Ratio 0.97
  • Earnings Quality (OCF/NI) 2.84
  • Share Dilution -5.1%

Failed (11)

  • Price CAGR -6.74%
  • P/B Ratio 10.10
  • Debt/Equity ratio
  • CapEx intensity
  • Debt/EBITDA
  • Low reliance on intangibles
  • Price below Graham Number
  • Revenue Growth 5Y 4.7%
  • Analyst Consensus 12% Buy
  • Net Margin Trend 5.7% vs 8.6%
  • Piotroski F-Score 4/9

Unavailable (1)

  • Dividend Payout NaN%

Piotroski F-Score

4/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

2.84

High quality: earnings backed by cash

Share Dilution

-5.1%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. John K. MinChief Legal Officer & Secretary45
Mr. Eric J. Wunsch Esq.President of International54
Mr. Robert D. WrightPresident, CEO & Director58
Mr. Steven W. CirulisChief Financial Officer & Chief Strategy Officer54
Mr. Aaron M. KaleChief Accounting Officer, Principal Accounting Officer & VP of Tax48
Mr. Matthew P. SpessardChief Information Officer42
Mr. Aaron BroholmHead of Investor Relations-
Ms. Heidi S. SchauerVice President of Communications, Public Affairs & Customer Care-
Mr. Tariq H. HassanChief Marketing & Customer Growth Officer55
Ms. Liliana M. EspositoChief Corporate Affairs & Sustainability Officer50

Audit Risk

3

Board Risk

3

Compensation Risk

6

Shareholder Rights Risk

1

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-23

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-07

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-08-17

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for WEN, sourced from Markets Gazette.

  • 8/27/2026NEGATIVE
    Wendy's Falls on No Buyout Bid; Meta Moves on Settlement | Stock Movers

    Wendy's shares experienced a significant decline following a report that Trian Fund Management, led by Nelson Peltz, has no current intention to pursue a buyout bid to take the fast-food chain private. This news dashed investor hopes for a potential acquisition premium. The stock's performance is now solely dependent on its operational fundamentals and future growth prospects, without the catalyst of a privatization deal. Investors will be closely watching for any strategic updates or performance improvements from Wendy's management to justify current valuations.

  • 8/19/2026NEGATIVE
    Nelson Peltz might take Wendy’s private following six straight quarterly sales declines as customers flee its poor franchise models and bad marketing

    Nelson Peltz is reportedly considering taking Wendy's private amidst a challenging period for the fast-food chain. This potential move follows six consecutive quarters of declining sales, attributed to issues with franchise models and marketing strategies. The news suggests significant underlying operational problems that could deter public market investors. If Peltz's bid materializes, it signals a lack of confidence in Wendy's ability to recover as a publicly traded entity, potentially leading to a delisting and a reassessment of its long-term value proposition.

  • 8/12/2026POSITIVE
    Wendy’s Shares Jumps On Peltz Bid News

    Wendy's shares surged to a seven-week high following reports that Trian Fund Management, led by Nelson Peltz, is preparing a bid to take the fast-food chain private. This news has injected significant investor interest into the company, driving its stock price upward. The potential privatization suggests a belief in the underlying value of Wendy's assets or operations, which could be unlocked or restructured under new ownership. Investors are likely reacting to the prospect of a premium acquisition price.

  • 6/24/2026POSITIVE
    Is Wendy’s the next meme stock? Everyday traders are trying to ‘save’ the fast-food chain.

    Wendy's Company shares surged 25% in early trading on Wednesday, fueled by a surge of interest from retail traders attempting to replicate the 'meme stock' phenomenon. This significant price jump, driven by online community sentiment rather than fundamental company news, has caught market observers' attention. While the long-term impact remains uncertain, the short-term rally highlights the power of coordinated retail trading activity in influencing stock prices, potentially attracting further speculative interest.

  • 6/24/2026POSITIVE
    Wendy’s Stock Soars 26% as Meme Traders Flock to Burger Chain

    Wendy's Co. experienced a significant surge of 26% in its stock price, driven by renewed interest from the "meme-stock" trading community. The fast-food chain, recognized for popular items like the Frosty and Dave's Triple burger, has become the latest target for retail investors coordinating online. This influx of speculative buying has dramatically boosted the company's market valuation, highlighting the growing influence of social media sentiment on stock performance. Investors are watching to see if this momentum is sustainable or a short-term phenomenon.

  • 6/8/2026NEUTRAL
    Wall Street's Most Accurate Analysts Give Their Take On 3 Consumer Stocks With Over 6% Dividend Yields

    The article highlights three consumer discretionary stocks offering dividend yields exceeding 6%, with a focus on Wendy's appointment of a new CEO. While the specific impact of the CEO change on Wendy's financial performance is not detailed, the news positions it among companies attractive to investors seeking income in volatile markets. Other companies mentioned, Newell Brands and Vail Resorts, are noted for different strategic moves and analyst sentiment, suggesting a mixed outlook across the consumer discretionary sector.

  • 5/12/2026POSITIVE
    Wendy's Shares Surge On Reported Buyout Interest From Nelson Peltz's Trian

    Wendy's shares experienced a significant surge on Tuesday following reports that Trian Fund Management, led by Nelson Peltz, is exploring a potential take-private transaction. The activist investor is reportedly seeking support from other investors for a bid to acquire the fast-food chain. This news has ignited investor interest, driving up the stock price as the market anticipates a potential acquisition premium. For shareholders, this development presents an opportunity for a lucrative exit if the deal materializes.

  • 5/8/2026NEGATIVE
    Wendy's Turnaround Faces Margin Pressure From Inflation, Slower Traffic

    Wendy's reported Q1 earnings that surpassed analyst expectations, with earnings per share (EPS) at $0.25, beating the consensus estimate of $0.23. However, the company is experiencing significant margin pressure due to rising inflation impacting ingredient costs and a slowdown in customer traffic. This dual challenge threatens the effectiveness of their ongoing turnaround strategy. Investors are weighing the positive earnings surprise against the persistent operational headwinds that could hinder future growth and profitability.

  • 5/8/2026NEUTRAL
    Wendy's Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

    Wendy's is scheduled to report its first-quarter earnings on May 8th. Current analyst consensus forecasts earnings per share of $0.10, a significant decrease from the $0.20 reported in the same quarter last year. Despite this downward revision in expectations, the stock saw a modest 0.6% increase on Thursday. Recent analyst ratings show mixed sentiment, with Stephens & Co. maintaining an Overweight rating, while Argus Research downgraded its rating from Buy to Hold in November 2021, and RBC Capital maintains a Sector Perform rating. Investors will be closely watching the earnings report for any signs of operational improvement or future guidance that could impact the stock's trajectory.

via Markets Gazette