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Market Cap

US$5.0b

Last Updated

2021/04/16 22:52 UTC

Data Sources

Company Financials +

Executive Summary

The Wendy's Company, together with its subsidiaries, operates as a quick-service restaurant company. More Details


Snowflake Analysis

Average dividend payer with limited growth.


Similar Companies

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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WEN's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

5.5%

WEN

-0.8%

US Hospitality

1.3%

US Market


1 Year Return

22.1%

WEN

87.6%

US Hospitality

53.9%

US Market

Return vs Industry: WEN underperformed the US Hospitality industry which returned 96.1% over the past year.

Return vs Market: WEN underperformed the US Market which returned 57.5% over the past year.


Shareholder returns

WENIndustryMarket
7 Day5.5%-0.8%1.3%
30 Day7.4%-4.3%3.3%
90 Day3.8%14.8%8.9%
1 Year23.6%22.1%88.4%87.6%56.6%53.9%
3 Year38.3%31.0%16.1%10.8%64.4%53.6%
5 Year123.9%103.5%73.7%60.4%120.4%95.7%

Long-Term 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

Valuation

Is Wendy's undervalued compared to its fair value and its price relative to the market?

42.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WEN ($22.28) is trading above our estimate of fair value ($21.02)

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 (42.3x) compared to the US Hospitality industry average (40.8x).

PE vs Market: WEN is poor value based on its PE Ratio (42.3x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: WEN is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: WEN is overvalued based on its PB Ratio (9.1x) compared to the US Hospitality industry average (3.9x).


Future Growth

How is Wendy's forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WEN's forecast earnings growth (16.3% per year) is above the savings rate (2%).

Earnings vs Market: WEN's earnings (16.3% per year) are forecast to grow slower than the US market (18.4% per year).

High Growth Earnings: WEN's earnings are forecast to grow, but not significantly.

Revenue vs Market: WEN's revenue (8.4% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: WEN's revenue (8.4% 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 (35.4%)


Past Performance

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

5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WEN has high quality earnings.

Growing Profit Margin: WEN's current net profit margins (8.4%) are lower than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: WEN's earnings have grown by 5.8% 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 (-13.2%) over the past year, making it difficult to compare to the Hospitality industry average (-33.1%).


Return on Equity

High ROE: Whilst WEN's Return on Equity (21.44%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Wendy's's financial position?


Financial Position Analysis

Short Term Liabilities: WEN's short term assets ($687.6M) exceed its short term liabilities ($413.3M).

Long Term Liabilities: WEN's short term assets ($687.6M) do not cover its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: WEN's debt to equity ratio (408.9%) is considered high.

Reducing Debt: WEN's debt to equity ratio has increased from 322.6% to 408.9% over the past 5 years.

Debt Coverage: WEN's debt is not well covered by operating cash flow (12.7%).

Interest Coverage: WEN's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Dividend

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

1.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WEN's dividend (1.62%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: WEN's dividend (1.62%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

Stable Dividend: WEN's dividend payments have been volatile 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 (55.1%), 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 (54.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Todd Penegor (55 yo)

4.92yrs

Tenure

US$7,213,774

Compensation

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 ($USD7.21M) is about average for companies of similar size in the US market ($USD6.51M).

Compensation vs Earnings: Todd's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WEN's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: WEN's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WEN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Wendy's Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Wendy's Company
  • Ticker: WEN
  • Exchange: NasdaqGS
  • Founded: 1969
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$5.026b
  • Shares outstanding: 222.00m
  • Website: https://www.wendys.com

Number of Employees


Location

  • The Wendy's Company
  • One Dave Thomas Boulevard
  • Dublin
  • Ohio
  • 43017
  • United States

Listings


Biography

The Wendy's Company, together with its subsidiaries, operates as a quick-service restaurant company. It operates through three segments: Wendy’s U.S., Wendy’s International, and Global Real Estate & Develo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 22:52
End of Day Share Price2021/04/16 00:00
Earnings2021/01/03
Annual Earnings2021/01/03


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.