WEN

Wendy'sNasdaqGS:WEN Stock Report

Market Cap

US$5.0b

7D

-0.04%

1Y

6.8%

Updated

18 Sep, 2021

Data

Company Financials +
WEN fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance4/6
Financial Health2/6
Dividends4/6

WEN Overview

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

Wendy's Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Wendy's
Historical stock prices
Current Share PriceUS$22.39
52 Week HighUS$18.86
52 Week LowUS$29.46
Beta0.94
1 Month Change-6.86%
3 Month Change-3.07%
1 Year Change6.85%
3 Year Change30.40%
5 Year Change106.74%
Change since IPO437.36%

Recent News & Updates

Aug 26
Why The Wendy's Company (NASDAQ:WEN) Could Be Worth Watching

Why The Wendy's Company (NASDAQ:WEN) Could Be Worth Watching

While The Wendy's Company ( NASDAQ:WEN ) might not be the most widely known stock at the moment, it received a lot of...

Aug 23

The Wendy's Company: Strong Second Quarter Results Solidify Long-Term Outperformance Thesis

F2Q2021 revenues of ~$493 million beat analyst estimates by ~$30 million. Earnings Per Share of $0.29 came in above consensus projections by $0.11. Guidance raised once again on strong business momentum. We’re maintaining our 1-year Price Target of $31.55/share for WEN. Reiterate Buy Rating.

Aug 14
Wendy's' (NASDAQ:WEN) Upcoming Dividend Will Be Larger Than Last Year's

Wendy's' (NASDAQ:WEN) Upcoming Dividend Will Be Larger Than Last Year's

The Wendy's Company ( NASDAQ:WEN ) will increase its dividend on the 15th of September to US$0.12. This makes the...

Shareholder Returns

WENUS HospitalityUS Market
7D-0.04%-0.5%-0.6%
1Y6.8%31.3%33.8%

Return vs Industry: WEN underperformed the US Hospitality industry which returned 29% over the past year.

Return vs Market: WEN underperformed the US Market which returned 33.6% over the past year.

Price Volatility

Is WEN's price volatile compared to industry and market?
WEN volatility
WEN Beta0.94
Industry Beta1.71
Market Beta1

Stable Share Price: WEN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: WEN's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19699,334Todd Penegorhttps://www.wendys.com

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 & Development. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches.

Wendy's Fundamentals Summary

How do Wendy's's earnings and revenue compare to its market cap?
WEN fundamental statistics
Market CapUS$4.99b
Earnings (TTM)US$185.58m
Revenue (TTM)US$1.51b

26.9x

P/E Ratio

3.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WEN income statement (TTM)
RevenueUS$1.51b
Cost of RevenueUS$796.50m
Gross ProfitUS$714.92m
ExpensesUS$529.35m
EarningsUS$185.58m

Last Reported Earnings

Jul 04, 2021

Next Earnings Date

Nov 10, 2021

Earnings per share (EPS)0.83
Gross Margin47.30%
Net Profit Margin12.28%
Debt/Equity Ratio421.9%

How did WEN perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

37%

Payout Ratio

Valuation

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

7.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WEN ($22.39) is trading below our estimate of fair value ($24.32)

Significantly Below Fair Value: WEN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WEN is poor value based on its PE Ratio (26.9x) compared to the US Hospitality industry average (23.9x).

PE vs Market: WEN is poor value based on its PE Ratio (26.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: WEN is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: WEN is overvalued based on its PB Ratio (8.7x) compared to the US Hospitality industry average (3.4x).


Future Growth

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

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WEN's forecast earnings growth (9.6% per year) is above the savings rate (2%).

Earnings vs Market: WEN's earnings (9.6% per year) are forecast to grow slower than the US market (14.8% per year).

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

Revenue vs Market: WEN's revenue (3.5% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: WEN's revenue (3.5% 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 very high in 3 years time (48.1%).


Past Performance

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

0.07%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WEN has high quality earnings.

Growing Profit Margin: WEN's current net profit margins (12.3%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: WEN's earnings have grown by 0.07% per year over the past 5 years.

Accelerating Growth: WEN's earnings growth over the past year (66.3%) exceeds its 5-year average (0.07% per year).

Earnings vs Industry: WEN earnings growth over the past year (66.3%) underperformed the Hospitality industry 96.4%.


Return on Equity

High ROE: Whilst WEN's Return on Equity (32.54%) 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 ($839.5M) exceed its short term liabilities ($372.8M).

Long Term Liabilities: WEN's short term assets ($839.5M) do not cover its long term liabilities ($4.2B).


Debt to Equity History and Analysis

Debt Level: WEN's debt to equity ratio (421.9%) is considered high.

Reducing Debt: WEN's debt to equity ratio has increased from 362.2% to 421.9% over the past 5 years.

Debt Coverage: WEN's debt is not well covered by operating cash flow (17.1%).

Interest Coverage: WEN's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


Dividend

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

2.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WEN's dividend (2.14%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: WEN's dividend (2.14%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 reasonably low payout ratio (37.3%), WEN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WEN's dividends in 3 years are forecast to be covered by earnings (53.8% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Todd Penegor (56 yo)

5.33yrs

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 ($USD7.21M) is about average for companies of similar size in the US market ($USD6.45M).

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 (3.6 years average tenure).


Board Members

Experienced Board: WEN's board of directors are considered experienced (5.8 years average tenure).


Ownership

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

Ownership Breakdown

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


Top Shareholders

Company Information

The Wendy's Company's 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$4.988b
  • Shares outstanding: 222.79m
  • Website: https://www.wendys.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 00:45
End of Day Share Price2021/09/17 00:00
Earnings2021/07/04
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.