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The Wendy's Company (WEN) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

The Wendy's Company

WENMarket cap $1.16BPrice $6.1

Country🇺🇸United States

SectorConsumer

IndustryHotels & Leisure

Runs the world's third-largest burger chain, serving fresh, never-frozen beef in a market dominated by frozen patties. Famous for square burgers and savage Twitter roasts, Wendy's turned social media sass into a real customer-acquisition engine.

In Bastion Portfolios?

52W Return-29%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+1%3

Revenue Forecast

Rev CAGR (1y)+1%3

Rev CAGR (3y)+1%1

Rev CAGR (5y)+2%2

Earnings Forecast

EPS Growth Y+1-48%2

EPS Growth Y+2+2%4

EPS Growth Y+3+12%7

Quality

Margins

EBIT Margin14%6

Net Income Margin6%4

Free Cash Flow Margin12%6

Debt

Net Debt/EBITDA8.21

Efficiency

ROE108%10

ROA3%4

Earnings Stability55

GEAR+WEAK18

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)137

P/E Ratio (Forward 3y)117

P/BV9.72

EV Multiples

EV/EBITDA Fwd115

EV/EBIT Fwd184

Yield

Free Cash Flow Yield22.7%10

Dividend Yield4.6%9

Momentum

Short term

1 month return-20%1

3 month return-17%2

YTD return-23%2

Mid term

Price vs 52wHigh64%3

1 year return-28%2

Long term

3 year return-62%1

5 year return-65%1

Risk Shield

Price Risk

Beta0.67

Volatility59%2

Free Cash Flow

Free Cash Flow Margin12%6

Free Cash Flow Yield22.7%10

Quality

ROCE7%4

Earnings Stability55

Net Debt/EBITDA8.21

02Growth

Is it actually growing, and how fast?

WENThe Wendy's

Revenue FY25$2.2B

GROWTH RATING↗

VERY WEAK7 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+1%3

Revenue, next 1Y+1%3

Revenue, next 3Y, CAGR+1%1

Revenue, next 5Y, CAGR+2%2

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-48%2

EPS growth, FY27E+2%4

EPS growth, FY28E+12%7

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue grew 1%/yr over the last 3 years and is set to keep growing around 0.7%/yr.

Earnings are set to grow in step with sales (EPS about 2%/yr vs revenue 0.7%/yr). One year dips: EPS falls 48% next year.

WEAKNESSES

Growth is the weak spot here, trailing 93% of companies worldwide.

Revenue grew 1%/yr over the last 3 years, behind 70% of companies worldwide.3/10

Revenue is set to grow 0.7%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 2%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: the 3-year revenue record is weak.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK3 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-20%1

3-month return-17%2

YTD return-23%2

MID & LONG-TERM▾SCORE

% of 52-week high64%3

1-year return-28%2

3-year return-62%1

5-year return-65%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-62% over three years and -65% over five), behind 90% of the market.

It's down 28% over the past year, now 36% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-20%), over three months (-17%) and so far this year (-23%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on The Wendy's Company. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

WENThe Wendy's

Revenue FY25$2.2B

GROWTH RATING↗

VERY WEAK7 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+1%3

Revenue, next 1Y+1%3

Revenue, next 3Y, CAGR+1%1

Revenue, next 5Y, CAGR+2%2

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-48%2

EPS growth, FY27E+2%4

EPS growth, FY28E+12%7

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue grew 1%/yr over the last 3 years and is set to keep growing around 0.7%/yr.

Earnings are set to grow in step with sales (EPS about 2%/yr vs revenue 0.7%/yr). One year dips: EPS falls 48% next year.

WEAKNESSES

Growth is the weak spot here, trailing 93% of companies worldwide.

Revenue grew 1%/yr over the last 3 years, behind 70% of companies worldwide.3/10

Revenue is set to grow 0.7%/yr over the next 3 years, behind most of the market.2/10

Over five years revenue is set to grow 2%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: the 3-year revenue record is weak.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK3 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-20%1

3-month return-17%2

YTD return-23%2

MID & LONG-TERM▾SCORE

% of 52-week high64%3

1-year return-28%2

3-year return-62%1

5-year return-65%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-62% over three years and -65% over five), behind 90% of the market.

It's down 28% over the past year, now 36% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-20%), over three months (-17%) and so far this year (-23%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on The Wendy's Company. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community