The Wendy's Company, together with its subsidiaries, operates as a quick-service restaurant company. More Details
Average 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 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.
7 Day Return
1 Year Return
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.
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
2 days ago | Simply Wall StIs The Wendy's Company (NASDAQ:WEN) A High Quality Stock To Own?
2 weeks ago | Simply Wall StReturn Trends At Wendy's (NASDAQ:WEN) Aren't Appealing
4 weeks ago | Simply Wall StA Look At The Fair Value Of The Wendy's Company (NASDAQ:WEN)
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 ($22.28) 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).
How is Wendy's forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
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%)
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 (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.
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 ($4.1B).
Debt to Equity History and Analysis
Debt Level: WEN's debt to equity ratio (408.9%) is considered high.
Reducing Debt: WEN's debt to equity ratio has increased from 322.6% to 408.9% over the past 5 years.
Debt Coverage: WEN's debt is not well covered by operating cash flow (12.7%).
Interest Coverage: WEN's interest payments on its debt are not well covered by EBIT (2.4x coverage).
What is Wendy's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WEN's dividend (1.62%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: WEN's dividend (1.62%) is low compared to the top 25% of dividend payers in the US market (3.48%).
Stability and Growth of Payments
Stable Dividend: WEN's dividend payments have been volatile in the past 10 years.
Growing Dividend: WEN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (55.1%), WEN's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WEN's dividends in 3 years are forecast to be covered by earnings (54.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Todd Penegor (55 yo)
Mr. Todd Allan Penegor has been the President of The Wendy's Company since January 4, 2016 and has been its Chief Executive Officer since May 26, 2016. Mr. Penegor has been Chief Financial Officer and Seni...
CEO Compensation Analysis
Compensation vs Market: Todd's total compensation ($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.
Experienced Management: WEN's management team is considered experienced (3.2 years average tenure).
Experienced Board: WEN's board of directors are considered experienced (5.3 years average tenure).
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
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$5.026b
- Shares outstanding: 222.00m
- Website: https://www.wendys.com
Number of Employees
- The Wendy's Company
- One Dave Thomas Boulevard
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/16 22:52|
|End of Day Share Price||2021/04/16 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.