YUM vs WEN

For growth investors, Yum!

Brands, Inc. (YUM) is the stronger pick with 8. 8% revenue growth year-over-year, versus 3. 0% for The Wendy's Company (WEN). The Wendy's Company (WEN) offers the better valuation at 7. 0x trailing P/E (11. 5x forward), making it the more compelling value choice. Analysts rate Yum! Brands, Inc. (YUM) a "Hold" — based on 51 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, The Wendy's Company (WEN) is the cheapest at 7.

0x versus Yum! Brands, Inc. at 28. 1x. On forward P/E, The Wendy's Company is actually cheaper at 11. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The Wendy's Company wins at 1. 11x versus Yum! Brands, Inc. 's 1. 70x — a reasonable growth-adjusted valuation.

Over the past 5 years, Yum!

Brands, Inc. (YUM) delivered a total return of +38. 9%, compared to -54. 8% for The Wendy's Company (WEN). Over 10 years, the gap is even starker: YUM returned +202. 2% versus WEN's +8. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Yum!

Brands, Inc. (YUM) is the lower-risk stock at 0. 19β versus The Wendy's Company's 0. 52β — meaning WEN is approximately 176% more volatile than YUM relative to the S&P 500.

By revenue growth (latest reported year), Yum!

Brands, Inc. (YUM) is pulling ahead at 8. 8% versus 3. 0% for The Wendy's Company (WEN). On earnings-per-share growth, the picture is similar: Yum! Brands, Inc. grew EPS 6. 5% year-over-year, compared to -2. 1% for The Wendy's Company. Over a 3-year CAGR, YUM leads at 6. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Yum!

Brands, Inc. (YUM) is the more profitable company, earning 19. 0% net margin versus 8. 7% for The Wendy's Company — meaning it keeps 19. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: YUM leads at 30. 8% versus 16. 5% for WEN. At the gross margin level — before operating expenses — YUM leads at 46. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, The Wendy's Company (WEN) is the more undervalued stock at a PEG of 1. 11x versus Yum! Brands, Inc. 's 1. 70x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, The Wendy's Company (WEN) trades at 11. 5x forward P/E versus 23. 1x for Yum! Brands, Inc. — 11. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WEN: 16. 2% to $7. 73.

All stocks in this comparison pay dividends.

The Wendy's Company (WEN) offers the highest yield at 15. 0%, versus 1. 8% for Yum! Brands, Inc. (YUM).

For long-horizon retirement investors, Yum!

Brands, Inc. (YUM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 19), 1. 8% yield, +202. 2% 10Y return). Both have compounded well over 10 years (YUM: +202. 2%, WEN: +8. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: YUM is a mid-cap quality compounder stock; WEN is a small-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.