WEN$7.78
$7.80
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AI WEN Summary
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Powered by LiveAIOverall Analysis
BuyThe Wendy's Company shows solid fundamental performance with a growing dividend yield and a reasonable P/E ratio. Technicals indicate a generally positive trend, though some indicators suggest a potential for short-term consolidation. The company is well-established in the quick-service restaurant sector, with opportunities for international expansion.
Thematic
Wendy's operates within the stable but competitive quick-service restaurant industry. Growth is likely to be driven by international expansion and menu innovation, but faces challenges from changing consumer preferences and competition.
Fundamental
Wendy's demonstrates strong profitability and a stable financial position. The company consistently generates positive free cash flow, supports a growing dividend, and has a manageable debt level relative to its assets.
Technical
The stock is currently trading above its key moving averages, indicating a positive short-to-medium term trend. While some oscillators suggest the stock may be nearing overbought territory, overall momentum appears supportive.
| Factor | Score |
|---|---|
| Quick-Service Restaurant Industry Growth | 70 |
| Consumer Spending & Disposable Income | 60 |
| Health & Wellness Trends | 55 |
| Digitalization & Delivery Services | 80 |
| Competition | 65 |
| Factor | Score |
|---|---|
| Valuation | 75 |
| Profitability | 85 |
| Growth | 65 |
| Balance Sheet Health | 60 |
| Cash Flow | 85 |
| Dividends | 95 |
| Factor | Score |
|---|---|
| Trend Analysis | 85 |
| Momentum | 70 |
| Volume Confirmation | 70 |
| Support & Resistance | 70 |
| Short-term Oscillators | 60 |
AI Investing Checklist
Powered by LiveAIBullish Points (6)
Attractive Valuation Metrics
Wendy's (WEN) exhibits a Price-to-Earnings (P/E) ratio of 11.32, which is notably lower than the US Hospitality industry average of 24x and the peer average of 18.9x, suggesting it may be undervalued relative to its industry and peers. The company's PE ratio is also below its fair PE ratio of 17.8x, indicating potential undervaluation. [34, 29]
Strong Dividend Yield
Wendy's offers a dividend yield of 5.35%, which is significantly higher than the Consumer Cyclical sector average of 2.59%. The annualized dividend per share is $1.00, and the company has a history of paying dividends since 2000. [4, 15, 19]
Bearish Points (8)
Slowing Revenue and EPS Growth
Quarterly revenue growth has decelerated, with a 2.9% increase in Q3 2024 compared to the same period last year. EPS for the same quarter was $0.25, down from $0.27 in the year-ago quarter. Notably, 23 out of the last 24 earnings revisions have been downward. [28, 37]
High Debt-to-Equity Ratio
Wendy's has a high debt-to-equity ratio of 2104.9%, indicating a significant reliance on debt financing. This leverage can increase financial risk, especially if profitability declines. [2, 12]
Calendar
June 2025
2
Ex-Dividend Date
June 2025
16
Next Dividend Date
August 2025
8
Next Earnings Date
H: $0.27
A: $0.26
L: $0.23
H: 569.50M
A: 558.43M
L: 550.70M
Profile
The Wendy's Company, together with its subsidiaries, operates as a quick-service restaurant company in the United States and internationally. It operates through Wendy's U.S., Wendy's International, and Global Real Estate & Development segments. The company involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches. It also owns and leases real estate properties. The company was formerly known as Wendy's/Arby's Group, Inc. and changed its name to The Wendy's Company in July 2011. The Wendy's Company was founded in 1969 and is headquartered in Dublin, Ohio.
Seasonals
Price Target
13.63 USD
The 39 analysts offering 1 year price forecasts for WEN have a max estimate of 18.50 and a min estimate of 11.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
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