# The Wendy's Company (WEN) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Consumer Cyclical / Hotels, Restaurants & Leisure. Price $8.03, market value $1.5 billion.

## Valuation
- **P/E (trailing): 12.2×** (5-yr avg 17.3×, 3-yr avg 14.2×). The Wendy's Company trades at 12.2× trailing earnings, well below its own five-year average of 17.3×: cheap by its own standards. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 15.2×, higher than trailing, so analysts expect earnings to fall.
- **Price / sales: 0.7×**. Each dollar of revenue is priced at 0.7×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 13.0×**. The shares trade at 13.0× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 8.7×**. Enterprise value is 8.7× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 17.3%** (5-yr avg 8.4%). Free cash flow equals 17.3% of the market value, above its five-year average of 8.4%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 8.2%**. The inverse of the P/E: 8.2% of the price is earned each year.

## Profitability
- **Operating margin: 13.6%**. 13.6% of revenue is left after running the business.
- **Net margin: 7.6%**. 7.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 140.6%**. A 140.6% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: 9.2%**. Return on all capital, debt included, is 9.2%.
- **Return on assets: 2.5%**. Each dollar of assets produces 2.5% of profit.

## Growth
- **Revenue growth (1 yr): -3.1%** (3-yr 1.3%/yr, 5-yr 4.7%/yr). Revenue fell 3.1% over the last year, against 4.7% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -10.5%** (3-yr 1.2%/yr, 5-yr 10.3%/yr). Earnings per share fell 10.5%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 11.6%/yr**. Free cash flow has compounded at 11.6% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 23.51**. Debt is 23.51 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 5.4×**. It would take 5.4 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Altman Z-score: 0.89**. A Z-score of 0.89 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.49%** ($0.56 per share, trailing). The Wendy's Company yields 3.49%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 79%** (40% of free cash flow). 79% of earnings goes out as dividends, leaving a thin cushion.
- **Dividend growth (5 yr): 18.2%/yr** (1-yr -33.0%). The dividend has compounded at 18.2% a year over five years, doubling roughly every 4 years at that pace.

## Analyst view
- **Analyst consensus: hold** (19 analysts). 19 analysts cover The Wendy's Company; the consensus is hold, with an average price target of $7.80 (-3% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -16.7%** (YTD 0.0%, 3-mo 19.7%). The shares are down 16.7% over twelve months including dividends.
- **From 52-week high: -20.7%** (32.3% above the low). Trading 21% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 48**. An RSI of 48 is neutral.
- **Beta (1 yr): 0.31** (volatility 60%). Beta of 0.31 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=WEN · Page: https://foliofundamentals.com/stocks/wen

Not investment advice.