The Wendy's Company (WEN) Financial Ratios
30 years of historical data (1996–2025) · Consumer Cyclical · Restaurants
EV/EBITDA
↓
10.21
↓-31% vs avg
5yr avg: 14.83
30Y Low5.5·High66.8
P/FCF
↓
5.34
↓-68% vs avg
5yr avg: 16.70
30Y Low3.4·High156.0
P/B Ratio
↑
11.24
↓-11% vs avg
5yr avg: 12.59
30Y Low0.3·High15.0
ROE
↑
87.6%
↓+52% vs avg
5yr avg: 57.7%
30Y Low-45%·High88%
Debt/EBITDA
↑
8.24
+2% vs avg
5yr avg: 8.07
30Y Low3.6·High43.2
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
WEN Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
The Wendy's Company trades at 8.0x earnings, 61% below its 5-year average of 20.3x, sitting at the 11th percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 21.2x, the stock trades at a discount of 62%. On a free-cash-flow basis, the stock trades at 5.3x P/FCF, 68% below the 5-year average of 16.7x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.3B | $1.6B | $3.4B | $4.1B | $4.9B | $5.4B | $5.0B | $5.2B | $3.8B | $4.1B | $3.6B |
| Enterprise Value | $5.1B | $5.5B | $7.0B | $7.7B | $8.4B | $9.0B | $8.4B | $8.6B | $6.2B | $6.7B | $5.9B |
| P/E Ratio → | 8.00 | 9.82 | 17.37 | 20.08 | 27.60 | 26.80 | 42.15 | 38.21 | 8.31 | 21.32 | 27.59 |
| P/S Ratio | 0.59 | 0.74 | 1.51 | 1.89 | 2.33 | 2.82 | 2.88 | 3.05 | 2.41 | 3.39 | 2.51 |
| P/B Ratio | 11.24 | 13.80 | 13.08 | 13.30 | 10.49 | 12.26 | 9.09 | 10.09 | 5.90 | 7.23 | 6.83 |
| P/FCF | 5.34 | 6.68 | 13.00 | 15.82 | 28.01 | 19.99 | 23.20 | 24.29 | 24.80 | 26.37 | 82.32 |
| P/OCF | 3.76 | 4.70 | 9.55 | 11.93 | 18.79 | 15.48 | 17.58 | 18.03 | 17.08 | 17.35 | 18.60 |
P/E links to full P/E history page with 30-year chart
WEN EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
The Wendy's Company's enterprise value stands at 10.2x EBITDA, 31% below its 5-year average of 14.8x. The Consumer Cyclical sector median is 12.2x, placing the stock at a 16% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.51 | 3.13 | 3.55 | 4.02 | 4.72 | 4.83 | 5.05 | 3.89 | 5.50 | 4.12 |
| EV / EBITDA | 10.21 | 10.86 | 13.29 | 14.60 | 17.22 | 18.19 | 20.81 | 21.87 | 16.32 | 19.76 | 13.48 |
| EV / EBIT | 15.47 | 15.45 | 17.75 | 19.19 | 23.02 | 25.61 | 30.93 | 30.00 | 8.90 | 30.70 | 18.71 |
| EV / FCF | — | 22.52 | 26.96 | 29.74 | 48.29 | 33.46 | 38.85 | 40.20 | 40.05 | 42.82 | 135.15 |
WEN Profitability
Margins and return-on-capital ratios measuring operating efficiency
The Wendy's Company earns an operating margin of 15.3%, above the Consumer Cyclical sector average of 2.0%. Operating margins have compressed from 17.5% to 15.3% over the past 3 years, signaling potential cost pressures or competitive headwinds. Return on equity of 87.6% is exceptionally high — well above the sector median of 5.3%. ROIC of 6.3% represents adequate returns on invested capital versus a sector median of 5.2%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 26.9% | 26.9% | 35.2% | 35.6% | 34.4% | 28.3% | 35.8% | 35.4% | 37.9% | 49.1% | 42.4% |
| Operating Margin | 15.3% | 15.3% | 16.5% | 17.5% | 16.9% | 19.3% | 15.5% | 15.4% | 15.7% | 17.6% | 21.9% |
| Net Profit Margin | 7.6% | 7.6% | 8.7% | 9.4% | 8.5% | 10.6% | 6.8% | 8.0% | 28.9% | 15.9% | 9.0% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 87.6% | 87.6% | 68.3% | 52.7% | 39.3% | 40.6% | 22.1% | 23.5% | 75.3% | 35.2% | 20.2% |
| ROA | 3.3% | 3.3% | 3.8% | 3.8% | 3.3% | 4.0% | 2.3% | 2.9% | 11.0% | 4.8% | 3.2% |
| ROIC | 6.3% | 6.3% | 7.1% | 7.2% | 6.6% | 6.9% | 5.1% | 5.7% | 6.1% | 5.4% | 8.3% |
| ROCE | 7.2% | 7.2% | 7.9% | 7.7% | 7.2% | 7.9% | 5.8% | 6.1% | 6.3% | 5.7% | 8.3% |
WEN Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
The Wendy's Company carries a Debt/EBITDA ratio of 8.2x, which is highly leveraged (73% above the sector average of 4.8x). Net debt stands at $3.8B ($4.1B total debt minus $301M cash). Interest coverage of just 2.8x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 35.31 | 35.31 | 15.78 | 13.36 | 9.19 | 8.84 | 6.69 | 7.19 | 4.29 | 4.81 | 4.76 |
| Debt / EBITDA | 8.24 | 8.24 | 7.73 | 7.80 | 8.75 | 7.83 | 9.14 | 9.42 | 7.35 | 8.09 | 5.72 |
| Net Debt / Equity | — | 32.75 | 14.04 | 11.70 | 7.59 | 8.27 | 6.13 | 6.61 | 3.63 | 4.51 | 4.38 |
| Net Debt / EBITDA | 7.64 | 7.64 | 6.88 | 6.83 | 7.23 | 7.32 | 8.38 | 8.66 | 6.21 | 7.59 | 5.27 |
| Debt / FCF | — | 15.84 | 13.96 | 13.92 | 20.28 | 13.47 | 15.64 | 15.92 | 15.24 | 16.44 | 52.83 |
| Interest Coverage | 2.80 | 2.80 | 3.20 | 3.25 | 2.99 | 3.20 | 2.30 | 2.48 | 5.81 | 1.86 | 2.76 |
WEN Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.76x means The Wendy's Company can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has declined from 2.19x to 1.76x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.76 | 1.76 | 1.85 | 2.19 | 2.73 | 1.39 | 1.66 | 1.58 | 2.34 | 1.78 | 1.97 |
| Quick Ratio | 1.74 | 1.74 | 1.83 | 2.18 | 2.71 | 1.37 | 1.65 | 1.57 | 2.33 | 1.77 | 1.95 |
| Cash Ratio | 0.86 | 0.86 | 1.13 | 1.35 | 1.92 | 0.58 | 0.74 | 0.86 | 1.52 | 0.75 | 0.86 |
| Asset Turnover | — | 0.44 | 0.45 | 0.42 | 0.38 | 0.37 | 0.34 | 0.34 | 0.37 | 0.30 | 0.36 |
| Inventory Turnover | 215.50 | 215.50 | 223.08 | 210.03 | 192.84 | 229.25 | 235.07 | 283.54 | 267.63 | 197.17 | 289.98 |
| Days Sales Outstanding | — | 19.67 | 16.24 | 20.36 | 32.55 | 23.00 | 36.45 | 25.09 | 25.21 | 34.13 | 25.13 |
WEN Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
The Wendy's Company returns 25.3% to shareholders annually — split between a 9.8% dividend yield and 15.5% buyback yield. The payout ratio of 78.5% is elevated — while still covered by earnings, there is limited headroom for dividend increases. The earnings yield of 12.5% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 9.8% | 8.0% | 6.0% | 5.1% | 2.2% | 1.8% | 1.3% | 1.8% | 2.1% | 1.6% | 1.8% |
| Payout Ratio | 78.5% | 78.5% | 105.2% | 102.4% | 60.2% | 47.3% | 55.0% | 70.4% | 17.5% | 35.2% | 49.2% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 12.5% | 10.2% | 5.8% | 5.0% | 3.6% | 3.7% | 2.4% | 2.6% | 12.0% | 4.7% | 3.6% |
| FCF Yield | 18.7% | 15.0% | 7.7% | 6.3% | 3.6% | 5.0% | 4.3% | 4.1% | 4.0% | 3.8% | 1.2% |
| Buyback Yield | 15.5% | 12.4% | 2.3% | 4.6% | 1.1% | 5.0% | 1.2% | 4.2% | 7.0% | 3.0% | 9.3% |
| Total Shareholder Yield | 25.3% | 20.4% | 8.3% | 9.7% | 3.2% | 6.8% | 2.5% | 6.0% | 9.2% | 4.7% | 11.1% |
| Shares Outstanding | — | $194M | $206M | $212M | $216M | $224M | $228M | $235M | $245M | $252M | $267M |
Peer Comparison
Compare WEN with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 WENYou | $1B | 8.0 | 10.2 | 5.3 | 26.9% | 15.3% | 87.6% | 6.3% | 8.2 |
 MCD | $198B | 23.3 | 17.3 | 27.5 | 57.4% | 46.1% | — | 18.7% | 3.8 |
 QSR | $25B | 31.3 | 17.0 | 17.6 | 41.1% | 23.7% | 15.5% | 8.2% | 7.1 |
 JACK | $244M | -3.0 | 82.4 | 3.3 | 28.7% | -1.2% | — | -0.6% | 77.6 |
 SHAK | $2B | 54.2 | 15.2 | 42.1 | 18.0% | 5.9% | 8.7% | 6.0% | 4.7 |
 FRSH | $2B | 14.1 | 26.5 | 10.0 | 85.0% | 1.6% | 16.9% | 2.0% | 0.9 |
 YUM | $42B | 27.3 | 19.5 | 25.6 | 46.2% | 30.8% | — | 48.1% | 4.4 |
 CMG | $42B | 28.5 | 21.8 | 29.2 | 25.4% | 16.9% | 47.4% | 15.3% | 4.1 |
 DPZ | $11B | 17.8 | 14.6 | 15.6 | 40.0% | 19.3% | — | 73.5% | 5.0 |
 PZZA | $1B | 40.5 | 12.4 | 19.6 | 28.9% | 4.3% | — | 11.7% | 6.0 |
 RRGB | $116M | -4.8 | 11.3 | 18.6 | 68.0% | 0.2% | — | 0.5% | 9.5 |
| Consumer Cyclical Median | — | 21.2 | 12.2 | 15.6 | 36.2% | 2.0% | 5.3% | 5.2% | 4.8 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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WEN — Frequently Asked Questions
Quick answers to the most common questions about buying WEN stock.
What is The Wendy's Company's P/E ratio?
The Wendy's Company's current P/E ratio is 8.0x. The historical average is 30.1x. This places it at the 11th percentile of its historical range.
What is The Wendy's Company's EV/EBITDA?
The Wendy's Company's current EV/EBITDA is 10.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.2x.
What is The Wendy's Company's ROE?
The Wendy's Company's return on equity (ROE) is 87.6%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 16.4%.
Is WEN stock overvalued?
Based on historical data, The Wendy's Company is trading at a P/E of 8.0x. This is at the 11th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is The Wendy's Company's dividend yield?
The Wendy's Company's current dividend yield is 9.82% with a payout ratio of 78.5%.
What are The Wendy's Company's profit margins?
The Wendy's Company has 26.9% gross margin and 15.3% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does The Wendy's Company have?
The Wendy's Company's Debt/EBITDA ratio is 8.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.