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Wendy's

Nasdaq:WEN
Snowflake Description

Established dividend payer with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WEN
Nasdaq
$4B
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

The Wendy's Company, together its subsidiaries, operates as a quick-service restaurant company. The last earnings update was 47 days ago. More info.


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WEN Share Price and Events
7 Day Returns
0.3%
NasdaqGS:WEN
0%
US Hospitality
2.2%
US Market
1 Year Returns
10.9%
NasdaqGS:WEN
-9.9%
US Hospitality
3.8%
US Market
WEN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Wendy's (WEN) 0.3% 2.2% 14.1% 10.9% 108.2% 127.2%
US Hospitality 0% 3.3% 1.6% -9.9% 45.7% 18.4%
US Market 2.2% 4.2% 4.4% 3.8% 43% 40.9%
1 Year Return vs Industry and Market
  • WEN outperformed the Hospitality industry which returned -9.9% over the past year.
  • WEN outperformed the Market in United States of America which returned 3.8% over the past year.
Price Volatility
WEN
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Wendy's undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Wendy's to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Wendy's.

NasdaqGS:WEN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 22 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:WEN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.924 (1 + (1- 21%) (84.9%))
1.364
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.36
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.364 * 5.96%)
10.86%

Discounted Cash Flow Calculation for NasdaqGS:WEN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Wendy's is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:WEN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.86%)
2019 237.07 Analyst x6 213.84
2020 280.53 Analyst x5 228.26
2021 283.50 Analyst x2 208.07
2022 299.00 Analyst x1 197.95
2023 312.59 Est @ 4.55% 186.68
2024 325.10 Est @ 4% 175.13
2025 336.87 Est @ 3.62% 163.69
2026 348.17 Est @ 3.35% 152.60
2027 359.19 Est @ 3.17% 142.01
2028 370.10 Est @ 3.04% 131.99
Present value of next 10 years cash flows $1,800.22
NasdaqGS:WEN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $370.10 × (1 + 2.73%) ÷ (10.86% – 2.73%)
$4,676.04
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,676.04 ÷ (1 + 10.86%)10
$1,667.63
NasdaqGS:WEN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,800.22 + $1,667.63
$3,467.85
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,467.85 / 230.72
$15.03
NasdaqGS:WEN Discount to Share Price
Calculation Result
Value per share (USD) From above. $15.03
Current discount Discount to share price of $19.38
= -1 x ($19.38 - $15.03) / $15.03
-28.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Wendy's is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Wendy's's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Wendy's's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:WEN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.00
NasdaqGS:WEN Share Price ** NasdaqGS (2019-06-21) in USD $19.38
United States of America Hospitality Industry PE Ratio Median Figure of 74 Publicly-Listed Hospitality Companies 22.7x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Wendy's.

NasdaqGS:WEN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:WEN Share Price ÷ EPS (both in USD)

= 19.38 ÷ 2.00

9.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wendy's is good value based on earnings compared to the US Hospitality industry average.
  • Wendy's is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Wendy's's expected growth come at a high price?
Raw Data
NasdaqGS:WEN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts
3.9%per year
United States of America Hospitality Industry PEG Ratio Median Figure of 55 Publicly-Listed Hospitality Companies 1.94x
United States of America Market PEG Ratio Median Figure of 2,134 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NasdaqGS:WEN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.67x ÷ 3.9%

2.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wendy's is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Wendy's's assets?
Raw Data
NasdaqGS:WEN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $2.77
NasdaqGS:WEN Share Price * NasdaqGS (2019-06-21) in USD $19.38
United States of America Hospitality Industry PB Ratio Median Figure of 112 Publicly-Listed Hospitality Companies 2.19x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.81x
NasdaqGS:WEN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:WEN Share Price ÷ Book Value per Share (both in USD)

= 19.38 ÷ 2.77

6.99x

* Primary Listing of Wendy's.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wendy's is overvalued based on assets compared to the US Hospitality industry average.
X
Value checks
We assess Wendy's's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Wendy's has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Wendy's expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Wendy's expected to grow at an attractive rate?
  • Wendy's's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Wendy's's earnings growth is positive but not above the United States of America market average.
  • Wendy's's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:WEN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:WEN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts 3.9%
NasdaqGS:WEN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 22 Analysts 4.2%
United States of America Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 16.6%
United States of America Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 7.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:WEN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:WEN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,922 422 284 1
2022-12-31 1,861 364 211 1
2021-12-31 1,815 330 175 5
2020-12-31 1,779 336 168 22
2019-12-31 1,702 299 145 20
NasdaqGS:WEN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,290 218 472
2018-12-30 1,264 224 460
2018-09-30 1,256 321 601
2018-07-01 1,245 294 224
2018-04-01 1,239 265 192
2017-12-31 1,223 239 194
2017-10-01 1,224 212 64
2017-07-02 1,280 189 98
2017-04-02 1,342 180 127
2017-01-01 1,435 194 130
2016-10-02 1,590 231 189
2016-07-03 1,690 265 149
2016-04-03 1,797 242 147

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Wendy's's earnings are expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
  • Wendy's's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:WEN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below

All data from Wendy's Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WEN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.92 1.92 1.92 1.00
2022-12-31 1.36 1.36 1.36 1.00
2021-12-31 0.83 0.91 0.78 4.00
2020-12-31 0.76 0.83 0.70 16.00
2019-12-31 0.63 0.67 0.60 14.00
NasdaqGS:WEN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.00
2018-12-30 1.93
2018-09-30 2.51
2018-07-01 0.93
2018-04-01 0.79
2017-12-31 0.79
2017-10-01 0.26
2017-07-02 0.39
2017-04-02 0.49
2017-01-01 0.49
2016-10-02 0.71
2016-07-03 0.54
2016-04-03 0.49

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Wendy's is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Wendy's's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Wendy's has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Wendy's performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Wendy's's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Wendy's has delivered over 20% year on year earnings growth in the past 5 years.
  • Wendy's's 1-year earnings growth exceeds its 5-year average (145.9% vs 35.1%)
  • Wendy's's earnings growth has exceeded the US Hospitality industry average in the past year (145.9% vs 1%).
Earnings and Revenue History
Wendy's's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Wendy's Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WEN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,290.36 471.85 216.45
2018-12-30 1,263.92 460.12 217.49
2018-09-30 1,256.35 600.56 201.56
2018-07-01 1,245.34 223.57 206.73
2018-04-01 1,239.25 191.85 202.64
2017-12-31 1,223.41 194.03 203.59
2017-10-01 1,224.06 63.64 214.25
2017-07-02 1,280.07 98.28 221.47
2017-04-02 1,342.45 126.60 232.54
2017-01-01 1,435.42 129.62 236.79
2016-10-02 1,589.88 189.41 223.37
2016-07-03 1,690.50 148.85 240.55
2016-04-03 1,797.32 147.19 251.50
2016-01-03 1,870.30 139.98 256.55
2015-09-27 1,893.24 74.25 287.40
2015-06-28 1,925.28 87.06 289.86
2015-03-29 1,941.82 89.57 292.72
2014-12-28 1,998.50 116.42 260.73
2014-09-28 2,103.60 126.80 319.79
2014-06-29 2,247.71 103.73 317.73
2014-03-30 2,392.18 88.63 317.59
2013-12-29 2,423.67 48.39 305.14
2013-09-29 2,524.88 37.83 286.61
2013-06-30 2,520.41 13.07 282.26
2013-03-31 2,515.74 -4.64 280.81
2012-12-30 2,505.24 5.57 299.41
2012-09-30 2,490.38 -46.31 295.07
2012-07-01 2,465.49 6.77 288.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Wendy's made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Wendy's used its assets less efficiently than the US Hospitality industry average last year based on Return on Assets.
  • Wendy's's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Wendy's's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Wendy's has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Wendy's's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Wendy's's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Wendy's is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Wendy's's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Wendy's's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Wendy's Company Filings, last reported 2 months ago.

NasdaqGS:WEN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 640.69 2,324.81 414.17
2018-12-30 648.45 2,328.80 431.41
2018-09-30 783.32 2,332.71 634.75
2018-07-01 430.54 2,336.70 194.94
2018-04-01 463.00 2,340.69 187.71
2017-12-31 573.20 2,754.40 171.45
2017-10-01 462.60 2,289.83 186.63
2017-07-02 487.05 2,728.75 204.54
2017-04-02 524.85 2,552.72 193.24
2017-01-01 527.74 2,512.28 198.24
2016-10-02 678.58 2,515.82 308.78
2016-07-03 693.16 2,509.12 266.18
2016-04-03 733.59 2,502.04 312.92
2016-01-03 752.91 2,426.11 327.22
2015-09-27 705.46 2,403.13 175.70
2015-06-28 1,738.43 2,397.38 1,197.57
2015-03-29 1,715.86 1,457.19 202.86
2014-12-28 1,717.58 1,441.52 267.11
2014-09-28 1,728.72 1,447.84 342.45
2014-06-29 1,744.37 1,454.09 371.66
2014-03-30 1,723.15 1,461.57 384.70
2013-12-29 1,929.49 1,463.83 580.15
2013-09-29 1,921.31 1,471.92 513.43
2013-06-30 1,963.80 1,471.16 494.42
2013-03-31 1,971.48 1,455.55 428.68
2012-12-30 1,985.86 1,457.56 453.36
2012-09-30 1,971.74 1,457.33 453.59
2012-07-01 1,993.57 1,394.28 435.10
  • Wendy's's level of debt (435.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (84.8% vs 435.9% today).
  • Debt is not well covered by operating cash flow (7.8%, less than 20% of total debt).
  • Wendy's earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Wendy's's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Wendy's has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Wendy's's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.06%
Current annual income from Wendy's dividends. Estimated to be 2.25% next year.
If you bought $2,000 of Wendy's shares you are expected to receive $41 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Wendy's's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Wendy's's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:WEN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
United States of America Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 47 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:WEN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.55 1.00
2022-12-31 0.50 1.00
2021-12-31 0.47 5.00
2020-12-31 0.44 11.00
2019-12-31 0.40 10.00
NasdaqGS:WEN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-15 0.400 2.204
2018-11-01 0.340 2.005
2018-08-02 0.340 1.952
2018-02-15 0.340 2.003
2017-11-02 0.280 1.795
2017-08-03 0.280 1.840
2017-05-10 0.280 1.781
2017-03-02 0.280 2.018
2017-02-16 0.280 2.027
2016-11-09 0.260 1.953
2016-08-04 0.240 2.288
2016-05-11 0.240 2.420
2016-02-17 0.240 2.310
2015-10-28 0.240 2.381
2015-07-30 0.220 2.387
2015-05-01 0.220 2.012
2015-02-18 0.220 2.028
2015-02-03 0.220 1.996
2014-07-31 0.200 2.336
2014-05-19 0.200 2.398
2014-02-20 0.200 2.259
2013-10-31 0.200 2.281
2013-07-23 0.200 2.484
2013-05-02 0.160 2.659
2013-02-13 0.160 2.885
2013-01-16 0.160 3.118
2012-11-08 0.160 3.421
2012-08-06 0.080 1.834
2012-05-02 0.080 1.747
2012-02-13 0.080 1.615
2011-10-31 0.080 1.543
2011-08-08 0.080 1.664
2011-05-05 0.080 1.593
2011-01-26 0.080 1.629
2010-11-12 0.080 1.705
2010-08-09 0.060 1.347
2010-05-10 0.060 1.388
2010-01-28 0.060 1.214
2009-11-03 0.060 1.379
2009-08-04 0.060 1.237

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Wendy's's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Wendy's's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Wendy's afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Wendy's has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Wendy's's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Todd Penegor
COMPENSATION $5,620,867
AGE 53
TENURE AS CEO 3.1 years
CEO Bio

Mr. Todd Allan Penegor has been the President of The Wendy's Company since January 4, 2016 and has been its Chief Executive Officer since May 26, 2016. Mr. Penegor has been Chief Financial Officer and Senior Vice President of Wendy's International, LLC (alternate name, Wendy's International, Inc.) since September 2013. He joined Wendy's Company in June 2013. He served as the Chief Financial Officer of The Wendy's Company from September 1, 2013 to May 26, 2016 and served as its Executive Vice President of International since December 2014 until January 2016, Senior Vice President from September 1, 2013 to December 2014 and Executive Officer. Mr. Penegor has extensive experience in finance and strategic planning, as well as global experience. He served as Vice President and President of Kellogg US Snacks at Kellogg Company from August 2008 to June 2013. He joined Kellogg in 2001. Mr. Penegor is actively involved with various civic organizations and serves as Vice Chair of the board of trustees of the Dave Thomas Foundation for Adoption and as a member of the Michigan State University Eli Broad College of Business financial advisory board. He served as Vice President and Chief Financial Officer of Kellogg Europe from 2007 to 2009 and Vice President and Chief Financial Officer of Kellogg USA and Kellogg Snacks from 2002 to 2007. He spent 12 years with Ford Motor Company in various positions, including strategy, M&A, the controller’s office and treasury. Mr. Penegor serves as a Director of The Wendy's Company since May 2016. He is a member of the financial advisory board of Michigan State University. Mr. Penegor received a bachelor’s degree in accounting and an MBA in finance from Michigan State University.

CEO Compensation
  • Todd's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Todd's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Wendy's management team in years:

3.1
Average Tenure
46.5
Average Age
  • The tenure for the Wendy's management team is about average.
Management Team

Todd Penegor

TITLE
President
COMPENSATION
$6M
AGE
53
TENURE
3.1 yrs

Gunther Plosch

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
49
TENURE
3.1 yrs

Abigail Pringle

TITLE
President of International & Chief Development Officer
COMPENSATION
$1M
AGE
44
TENURE
0.7 yrs

Kurt Kane

TITLE
President of U.S. & Chief Commercial Officer
COMPENSATION
$2M
AGE
46
TENURE
4.1 yrs

Leigh Burnside

TITLE
Senior VP of Finance & Chief Accounting Officer
AGE
48
TENURE
1.8 yrs

Greg Lemenchick

TITLE
Director of Investor Relations

E. Wunsch

TITLE
Chief Legal Officer & Secretary
COMPENSATION
$1M
AGE
47
TENURE
2.7 yrs

Liliana Esposito

TITLE
Chief Communications Officer
AGE
43
TENURE
5 yrs

Matthew O’Brien

TITLE
Chief People Officer
AGE
44
TENURE
5.8 yrs

Dana Klein

TITLE
Senior VP - Corporate & Securities Counsel and Assistant Secretary
Board of Directors Tenure

Average tenure and age of the Wendy's board of directors in years:

3.9
Average Tenure
64.5
Average Age
  • The tenure for the Wendy's board of directors is about average.
Board of Directors

Nelson Peltz

TITLE
Non Executive Chairman
COMPENSATION
$684K
AGE
75
TENURE
12 yrs

Todd Penegor

TITLE
President
COMPENSATION
$6M
AGE
53
TENURE
3.1 yrs

Peter May

TITLE
Non-Executive Vice Chairman
COMPENSATION
$220K
AGE
75
TENURE
12 yrs

Peter Rothschild

TITLE
Independent Director
COMPENSATION
$235K
AGE
62
TENURE
9.1 yrs

Art Winkleblack

TITLE
Independent Director
COMPENSATION
$220K
AGE
60
TENURE
3.1 yrs

Joseph Levato

TITLE
Independent Director
COMPENSATION
$215K
AGE
77
TENURE
23 yrs

Mich Mathews-Spradlin

TITLE
Independent Director
COMPENSATION
$207K
AGE
51
TENURE
4.3 yrs

Dennis Kass

TITLE
Independent Director
COMPENSATION
$207K
AGE
67
TENURE
3.5 yrs

Matthew Peltz

TITLE
Director
COMPENSATION
$203K
AGE
35
TENURE
3.5 yrs

Ken Gilbert

TITLE
Director
COMPENSATION
$201K
AGE
67
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • Wendy's individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. May 19 Sell Robert Wright Individual 10. May 19 10. May 19 -126,629 $18.74 $-2,372,508
07. Mar 19 Sell Trian Fund Management, L.P. Company 06. Mar 19 06. Mar 19 -3,000,000 $17.11 $-51,330,000
06. Mar 19 Sell Abigail Pringle Individual 06. Mar 19 06. Mar 19 -8,897 $17.35 $-154,394
26. Nov 18 Sell Robert Wright Individual 21. Nov 18 21. Nov 18 -28,300 $17.78 $-503,182
X
Management checks
We assess Wendy's's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Wendy's has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does The Wendy's Company (NASDAQ:WEN) Have A Good P/E Ratio?

Check out our latest analysis for Wendy's How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Wendy's: P/E of 9.72 = $19.48 ÷ $2 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings.

Simply Wall St -

Does This Valuation Of The Wendy's Company (NASDAQ:WEN) Imply Investors Are Overpaying?

In this article we are going to estimate the intrinsic value of The Wendy's Company (NASDAQ:WEN) by taking the expected future cash flows and discounting them to today's value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $243.68 $284.66 $283.50 $299.00 $312.59 $325.10 $336.87 $348.17 $359.19 $370.10 Growth Rate Estimate Source Analyst x5 Analyst x4 Analyst x2 Analyst x1 Est @ 4.55% Est @ 4% Est @ 3.62% Est @ 3.35% Est @ 3.17% Est @ 3.04% Present Value ($, Millions) Discounted @ 10.91% $219.70 $231.40 $207.78 $197.58 $186.24 $174.64 $163.16 $152.04 $141.42 $131.37 Present Value of 10-year Cash Flow (PVCF)= $1.81b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 10.9%.

Simply Wall St -

Why The Wendy's Company (NASDAQ:WEN) Is A Top Dividend Stock

NasdaqGS:WEN Historical Dividend Yield, May 13th 2019 Payout ratios Dividends are typically paid from company earnings. … Wendy's has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Wendy's has grown its earnings per share at 75% per annum over the past five years. The company is only paying out a fraction of its earnings as dividends, and in the past been able to use the retained earnings to grow its profits rapidly - an ideal combination. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Here's Why We Think Wendy's (NASDAQ:WEN) Is Well Worth Watching

So if you're like me, you might be more interested in profitable, growing companies, like Wendy's (NASDAQ:WEN). … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … On the one hand, Wendy's's EBIT margins fell over the last year, but on the other hand, revenue grew.

Simply Wall St -

Why We’re Not Impressed By The Wendy's Company’s (NASDAQ:WEN) 6.4% ROCE

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Could The The Wendy's Company (NASDAQ:WEN) Ownership Structure Tell Us Something Useful?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Companies of this size are usually well known to retail investors, too. … institutional investors have bought into the company

Simply Wall St -

Does The Wendy's Company's (NASDAQ:WEN) P/E Ratio Signal A Buying Opportunity?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll show how you can use The Wendy's Company's (NASDAQ:WEN) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Update: Wendy's Stock Gained90% In The Last Five Years

For example, long term The Wendy's Company (NASDAQ:WEN) shareholders have enjoyed a 90% share price rise over the last half decade, well in excess of the market return of around 57%. … During five years of share price growth, Wendy's achieved compound earnings per share (EPS) growth of 73% per year. … The EPS growth is more impressive than the yearly share price gain of 14% over the same period.

Simply Wall St -

Is The Wendy's Company's (NASDAQ:WEN) CEO Pay Fair?

Todd Penegor became the CEO of The Wendy's Company (NASDAQ:WEN) in 2016. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Todd Penegor's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Need To Know: The Wendy's Company (NASDAQ:WEN) Insiders Have Been Selling Shares

So before you buy or sell The Wendy's Company (NASDAQ:WEN), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price

Simply Wall St -

Company Info

Description

The Wendy's Company, together its subsidiaries, operates as a quick-service restaurant company. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches. As of December 30, 2018, its restaurant system included 6,711 franchise restaurants, which comprise 353 owned and operated restaurants worldwide. 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 based in Dublin, Ohio.

Details
Name: The Wendy's Company
WEN
Exchange: NasdaqGS
Founded: 1969
$4,469,125,003
230,724,058
Website: http://www.wendys.com
Address: The Wendy's Company
One Dave Thomas Boulevard,
Dublin,
Ohio, 43017,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS WEN Common Stock Nasdaq Global Select US USD 02. Mar 1964
DB TQK Common Stock Deutsche Boerse AG DE EUR 02. Mar 1964
Number of employees
Current staff
Staff numbers
12,500
Wendy's employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/24 00:14
End of day share price update: 2019/06/21 00:00
Last estimates confirmation: 2019/06/17
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.