WEN Consumer Cyclical

The Wendy's Company

$7.27+0.14%

Price as of close on Nov 3, 2026 · Financials updated Oct 1, 2026

Basics

Sector: Consumer Cyclical
Industry: Restaurants
Country: United States
Market cap: 1.4B USD
Enterprise value: 3.7B USD
Full-time employees: 4,967

Overall health

Strength: its shares are priced lower than most peers relative to what it earnspriced lower than peers for its earnings
Drawback: growing more slowly than most peersgrowing more slowly than peers
Drawback: higher risk than most peers: more debt relative to equity (22.82× vs a peer median of 0.46×)higher risk: more debt vs equity (22.82× vs peers 0.46×)

Ranks #985 of 1,502 consumer cyclical companies (bottom 35%)

See how it ranks against its peers

Worth knowing

Returning more cash than it generates. Paid out $1.0B vs $764M of free cash flow over the 3 fiscal years to 2025.
Wendy's returned $1.0B to shareholders over three years, 132% of the free cash flow it produced. That gap has to be covered by cash reserves or new debt, which can't last indefinitely.
Much more borrowing than peers. Debt is 22.8× equity vs a peer median of 0.5×.Debt is 22.8× equity vs peers 0.5×.
Debt is 22.8× shareholders' equity, against a peer median of 0.5×, among the highest 10% of its peer group.Debt is 22.8× shareholders' equity, vs peers 0.5×, among the highest 10% of its peer group.
Share count shrinking. Shares outstanding down 11% from January 2023 to July 2026.
Wendy's had 11% fewer shares at July 2026 than at January 2023, mainly through buybacks, so each remaining share owns a larger slice of the business.
Cash flow well above reported profit. Free cash flow is 2.1× reported profit.
Free cash flow is 2.1× reported profit. Large non-cash charges, such as depreciation, amortization or stock-based pay, reduce reported profit without using cash.

StockQuotient Score

44/ 100▼ 1 since Oct 27 close

Oct 5 45 → Nov 4 44 (-1)

Valuation

Is the price right?

80/100

Strong▼ 4 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why it changed since the Oct 27, 2026 close: Score 84 → 80

Share price +18.4%-8
Company's reported figures updated+3
Peer companies moved+1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Stronger than most peers on:

▲ FCF yield
▲ Earnings yield
▲ EBITDA yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield9.1%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score 1.43Sector median: 0.0439 · MAD: 0.0329

EBITDA yield12.2%

SEC filings · 12 months to Jun 2026Reported value50% base weight · Z-score 0.73Sector median: 0.0877 · MAD: 0.0461

Free cash flow yield19.1%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score 2.37Sector median: 0.0614 · MAD: 0.0545

Other data (not scored)

Book yield8.7%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.5650 · MAD: 0.3500

Growth

Is it growing?

24/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ EPS growth
▼ Revenue growth
▼ 3-yr revenue

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth-34.4%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -1.52Sector median: 0.0420 · MAD: 0.2537

3-year revenue growth0.7%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score -0.56Sector median: 0.0425 · MAD: 0.0636

Revenue growth-1.0%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.72Sector median: 0.0373 · MAD: 0.0653

Profitability

Does it earn well?

62/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ Operating margin

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin13.6%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.57Sector median: 0.0638 · MAD: 0.0461

Return on assets2.6%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.29Sector median: 0.0331 · MAD: 0.0254

Return on invested capital9.4%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.34Sector median: 0.0733 · MAD: 0.0600

Other data (not scored)

Gross margin63.0%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.3025 · MAD: 0.1399

Return on equity104.6%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentileInformational · 0% composite weightSector median: 0.0746 · MAD: 0.0674

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ Debt / equity

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta0.40

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score 0.80Sector median: 0.6345 · MAD: 0.2980

Current ratio1.90×

SEC filings · latest balance sheetReported value33% base weight · Z-score 0.75Sector median: 1.4800 · MAD: 0.5570

Debt / equity22.82×

SEC filings · latest balance sheetOutlier capped at sector 5th/95th percentile33% base weight · Z-score -9.02Sector median: 0.4646 · MAD: 0.3556

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Wendy's

Is Wendy's getting weaker?: Its latest SEC filing (Aug 7, 2026) showed no major changes. Its overall score is 44/100, down 1 since Oct 28, 2026.
How is Wendy's valued vs its peers?: Priced lower than most peers relative to what it earns. Valuation scores 80/100 against 1,612 consumer cyclical peers. Free cash flow yield 19.1% vs a peer median of 6.1% (stronger than 88% of peers).Free cash flow yield 19.1% vs peers 6.1% (stronger than 88% of peers).
Is Wendy's growing?: More slowly than most of its peers. Growth scores 24/100 against 1,612 consumer cyclical peers. Earnings per share growth -34.4% vs a peer median of 4.2% (weaker than 84% of peers).Earnings per share growth -34.4% vs peers 4.2% (weaker than 84% of peers).
How profitable is Wendy's?: More profitable than most of its peers. Profitability scores 62/100 against 1,612 consumer cyclical peers. Operating margin 13.6% vs a peer median of 6.4% (stronger than 80% of peers).Operating margin 13.6% vs peers 6.4% (stronger than 80% of peers).
How risky is Wendy's?: Higher risk relative to 1,612 consumer cyclical peers, judged on debt, liquidity and share-price swings. Beta 0.40 vs a peer median of 0.63 (stronger than 73% of peers).Beta 0.40 vs peers 0.63 (stronger than 73% of peers). Debt / equity 22.82× vs a peer median of 0.46× (weaker than 100% of peers).Debt / equity 22.82× vs peers 0.46× (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 28, 2026 · filed Aug 7, 2026 · compared with the quarter ended Mar 29, 2026

No major changes

	Previous quarter	Latest quarter	Change
Revenue (12 months)	2.2B USD	2.2B USD	+0.4%
Net income (12 months)	148.6M USD	126.1M USD	−15.1%
Operating margin	14.8%	13.6%	−1.2 pts
Free cash flow (12 months)	222.4M USD	264.2M USD	+18.8%
Debt	2.8B USD	2.7B USD	−0.2%
Cash	298.7M USD	341.2M USD	+14.2%
Shares outstanding	190.5M	190.7M	+0.1%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Restaurants · 19 companies

Valuations in Restaurants are within their usual range since 2016.

40% of months since 2016 were valued lower than now.
12% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +13% and earnings +17% (medians): earnings grew faster than prices.
Median price-to-sales is −28% vs the whole market, against a usual −11%.

2016Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Gross margin	67.8%	63.1%	63.6%	65.1%	63.6%	▼ 1.5 pts
Operating margin	19.3%	16.9%	17.5%	16.5%	15.8%	▼ 0.8 pts
Net margin	10.6%	8.5%	9.4%	8.7%	7.6%	▼ 1.1 pts
Return on assets (ROA)	3.9%	3.2%	3.9%	3.9%	3.3%	▼ 0.5 pts
Return on equity (ROE)	45.9%	38.1%	66.0%	74.9%	140.6%	▲ 66 pts
Free cash flow margin	14.1%	8.3%	11.9%	11.6%	11.1%	▼ 0.5 pts
Current ratio	1.39×	2.73×	2.19×	1.85×	1.76×	▼ 4.9%
Quick ratio	1.37×	2.71×	2.18×	1.83×	1.74×	▼ 5.2%
Debt to equity	5.46×	6.12×	8.92×	10.57×	23.51×	▲ 123%
Interest coverage	3.36×	2.89×	3.08×	3.00×	2.72×	▼ 9.4%

WEN price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: its shares are priced lower than most peers relative to what it earnspriced lower than peers for its earnings

Drawback: growing more slowly than most peersgrowing more slowly than peers

Drawback: higher risk than most peers: more debt relative to equity (22.82× vs a peer median of 0.46×)higher risk: more debt vs equity (22.82× vs peers 0.46×)

Ranks #985 of 1,502 consumer cyclical companies (bottom 35%)

See how it ranks against its peers

Worth knowing

Returning more cash than it generates. Paid out $1.0B vs $764M of free cash flow over the 3 fiscal years to 2025.

Wendy's returned $1.0B to shareholders over three years, 132% of the free cash flow it produced. That gap has to be covered by cash reserves or new debt, which can't last indefinitely.

Much more borrowing than peers. Debt is 22.8× equity vs a peer median of 0.5×.Debt is 22.8× equity vs peers 0.5×.

Debt is 22.8× shareholders' equity, against a peer median of 0.5×, among the highest 10% of its peer group.Debt is 22.8× shareholders' equity, vs peers 0.5×, among the highest 10% of its peer group.

Share count shrinking. Shares outstanding down 11% from January 2023 to July 2026.

Wendy's had 11% fewer shares at July 2026 than at January 2023, mainly through buybacks, so each remaining share owns a larger slice of the business.

Cash flow well above reported profit. Free cash flow is 2.1× reported profit.

Free cash flow is 2.1× reported profit. Large non-cash charges, such as depreciation, amortization or stock-based pay, reduce reported profit without using cash.

Questions investors ask about Wendy's

Is Wendy's getting weaker?

Its latest SEC filing (Aug 7, 2026) showed no major changes. Its overall score is 44/100, down 1 since Oct 28, 2026.

How is Wendy's valued vs its peers?

Priced lower than most peers relative to what it earns. Valuation scores 80/100 against 1,612 consumer cyclical peers. Free cash flow yield 19.1% vs a peer median of 6.1% (stronger than 88% of peers).Free cash flow yield 19.1% vs peers 6.1% (stronger than 88% of peers).

Is Wendy's growing?

More slowly than most of its peers. Growth scores 24/100 against 1,612 consumer cyclical peers. Earnings per share growth -34.4% vs a peer median of 4.2% (weaker than 84% of peers).Earnings per share growth -34.4% vs peers 4.2% (weaker than 84% of peers).

How profitable is Wendy's?

More profitable than most of its peers. Profitability scores 62/100 against 1,612 consumer cyclical peers. Operating margin 13.6% vs a peer median of 6.4% (stronger than 80% of peers).Operating margin 13.6% vs peers 6.4% (stronger than 80% of peers).

How risky is Wendy's?

Higher risk relative to 1,612 consumer cyclical peers, judged on debt, liquidity and share-price swings. Beta 0.40 vs a peer median of 0.63 (stronger than 73% of peers).Beta 0.40 vs peers 0.63 (stronger than 73% of peers). Debt / equity 22.82× vs a peer median of 0.46× (weaker than 100% of peers).Debt / equity 22.82× vs peers 0.46× (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

2.2B USD

2.2B USD

+0.4%

Net income (12 months)

148.6M USD

126.1M USD

−15.1%

Operating margin

14.8%

13.6%

−1.2 pts

Free cash flow (12 months)

222.4M USD

264.2M USD

+18.8%

Debt

2.8B USD

2.7B USD

−0.2%

Cash

298.7M USD

341.2M USD

+14.2%

Shares outstanding

190.5M

190.7M

+0.1%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Gross margin

67.8%

63.1%

63.6%

65.1%

63.6%

▼ 1.5 pts

Operating margin

19.3%

16.9%

17.5%

16.5%

15.8%

▼ 0.8 pts

Net margin

10.6%

8.5%

9.4%

8.7%

7.6%

▼ 1.1 pts

Return on assets (ROA)

3.9%

3.2%

3.9%

3.3%

▼ 0.5 pts

Return on equity (ROE)

45.9%

38.1%

66.0%

74.9%

140.6%

▲ 66 pts

Free cash flow margin

14.1%

8.3%

11.9%

11.6%

11.1%

▼ 0.5 pts

Current ratio

1.39×

2.73×

2.19×

1.85×

1.76×

▼ 4.9%

Quick ratio

1.37×

2.71×

2.18×

1.83×

1.74×

▼ 5.2%

Debt to equity

5.46×

6.12×

8.92×

10.57×

23.51×

▲ 123%

Interest coverage

3.36×

2.89×

3.08×

3.00×

2.72×

▼ 9.4%