The Wendy's Company, together its subsidiaries, operates as a quick-service restaurant company.
Established dividend payer with limited growth.
Share Price & News
How has Wendy's's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WEN has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: WEN exceeded the US Hospitality industry which returned 8.1% over the past year.
Return vs Market: WEN exceeded the US Market which returned 20.1% over the past year.
Price Volatility Vs. Market
How volatile is Wendy's's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StShould The Wendy's Company’s (NASDAQ:WEN) Weak Investment Returns Worry You?
2 weeks ago | Simply Wall StDid The Wendy's Company (NASDAQ:WEN) Insiders Sell Shares?
1 month ago | Simply Wall StA Closer Look At The Wendy's Company's (NASDAQ:WEN) Impressive ROE
Is Wendy's undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WEN ($22.91) is trading above our estimate of fair value ($15.88)
Significantly Below Fair Value: WEN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: WEN is poor value based on its PE Ratio (41.1x) compared to the Hospitality industry average (24.2x).
PE vs Market: WEN is poor value based on its PE Ratio (41.1x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: WEN is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: WEN is overvalued based on its PB Ratio (8.1x) compared to the US Hospitality industry average (2.2x).
How is Wendy's forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WEN's forecast earnings growth (14% per year) is above the savings rate (1.7%).
Earnings vs Market: WEN's earnings (14% per year) are forecast to grow slower than the US market (14.6% per year).
High Growth Earnings: WEN's earnings are forecast to grow, but not significantly.
Revenue vs Market: WEN's revenue (4.5% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: WEN's revenue (4.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WEN's Return on Equity is forecast to be high in 3 years time (37.3%)
How has Wendy's performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WEN has high quality earnings.
Growing Profit Margin: WEN's current net profit margins (9.6%) are lower than last year (47.5%).
Past Earnings Growth Analysis
Earnings Trend: WEN's earnings have grown significantly by 31.9% per year over the past 5 years.
Accelerating Growth: WEN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: WEN had negative earnings growth (-78.3%) over the past year, making it difficult to compare to the Hospitality industry average (-9.8%).
Return on Equity
High ROE: WEN's Return on Equity (19.9%) is considered low.
Return on Assets
Return on Capital Employed
How is Wendy's's financial position?
Financial Position Analysis
Short Term Liabilities: WEN's short term assets ($673.8M) exceed its short term liabilities ($337.4M).
Long Term Liabilities: WEN's short term assets ($673.8M) do not cover its long term liabilities ($4.1B).
Debt to Equity History and Analysis
Debt Level: WEN's debt to equity ratio (353.1%) is considered high.
Reducing Debt: WEN's debt to equity ratio has increased from 83.8% to 353.1% over the past 5 years.
Debt Coverage: WEN's debt is not well covered by operating cash flow (10.1%).
Interest Coverage: WEN's interest payments on its debt are not well covered by EBIT (2.3x coverage).
Inventory Level: WEN has a high level of physical assets or inventory.
Debt Coverage by Assets: WEN's debt is not covered by short term assets (assets are 0.3x debt).
What is Wendy's's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: WEN's dividend (2.1%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: WEN's dividend (2.1%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: WEN's dividends per share have been stable in the past 10 years.
Growing Dividend: WEN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (69%), WEN's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WEN's dividends in 3 years are forecast to be covered by earnings (60.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Todd Penegor (54yo)
Mr. Todd Allan Penegor has been the President of The Wendy's Company since January 4, 2016 and has been its Chief Executive Officer since May 26, 2016. Mr. Penegor has been Chief Financial Officer and Seni ...
CEO Compensation Analysis
Compensation vs Market: Todd's total compensation ($USD5.62M) is about average for companies of similar size in the US market ($USD6.26M).
Compensation vs Earnings: Todd's compensation has been consistent with company performance over the past year.
|Chief Financial Officer||3.8yrs||US$1.93m||0.036% $1.9m|
|President of International & Chief Development Officer||1.3yrs||US$1.43m||0.048% $2.5m|
|President of U.S. & Chief Commercial Officer||4.8yrs||US$1.66m||0.025% $1.3m|
|Senior VP of Finance & Chief Accounting Officer||2.5yrs||no data||0.015% $813.7k|
|Director of Investor Relations||0yrs||no data||no data|
|Chief Legal Officer & Secretary||3.3yrs||US$1.48m||0.019% $980.8k|
|Chief Communications Officer||5.7yrs||no data||0.015% $814.3k|
|Chief People Officer||6.5yrs||no data||0.0059% $311.0k|
|Senior VP - Corporate & Securities Counsel and Assistant Secretary||0yrs||no data||no data|
Experienced Management: WEN's management team is considered experienced (3.8 years average tenure).
|Non Executive Chairman||12.7yrs||US$684.49k||4.37% $230.3m|
|Non-Executive Vice Chairman||12.7yrs||US$220.21k||2.37% $124.8m|
|Independent Director||23.7yrs||US$215.00k||0.011% $580.8k|
|Independent Director||3.8yrs||US$219.50k||0.012% $635.1k|
|Independent Director||4.2yrs||US$207.00k||0.014% $726.8k|
|Independent Director||2.8yrs||US$200.53k||0.0085% $447.5k|
|Independent Director||9.8yrs||US$235.00k||0.056% $3.0m|
|Independent Director||5yrs||US$207.03k||0.016% $849.1k|
Experienced Board: WEN's board of directors are considered experienced (4.6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The Wendy's Company's company bio, employee growth, exchange listings and data sources
- Name: The Wendy's Company
- Ticker: WEN
- Exchange: NasdaqGS
- Founded: 1969
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: US$5.270b
- Shares outstanding: 230.05m
- Website: https://www.wendys.com
Number of Employees
- The Wendy's Company
- One Dave Thomas Boulevard
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|WEN||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Mar 1964|
|TQK||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Mar 1964|
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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/19 01:25|
|End of Day Share Price||2020/02/18 00:00|
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.