The Wendy's Company (WEN) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+1454.8%

$112.88

vs $7.26 price

Levered DCF

$63.07

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

1.04

Distress zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	9.79×	17.12×	19.88×	27.27×	26.25×	40.34×	36.93×	8.09×
P/B	13.75×	12.81×	13.17×	10.39×	12.12×	8.7×	9.87×	5.72×
P/S	0.74×	1.48×	1.87×	2.31×	2.79×	2.76×	2.98×	2.33×
EV / EBITDA	10.41×	12.57×	13.96×	16.69×	18.72×	20.21×	20.3×	7.37×
Gross margin	26.9%	35.2%	35.6%	34.4%	28.3%	35.8%	35.4%	37.9%
Operating margin	15.3%	16.5%	17.5%	16.9%	19.3%	15.5%	15.4%	15.7%
Net margin	7.6%	8.7%	9.4%	8.5%	10.6%	6.8%	8.0%	28.9%
Current ratio	1.76×	1.85×	2.19×	2.73×	1.39×	1.66×	1.58×	2.34×
Debt / equity	35.31×	15.78×	13.36×	9.19×	8.84×	6.69×	7.19×	4.29×
Interest coverage	2.63×	3×	3.08×	2.89×	3.36×	2.29×	2.26×	2.09×
Dividend yield	8.0%	6.2%	5.1%	2.2%	1.8%	1.4%	1.9%	2.2%
Payout ratio	78.5%	105.2%	102.4%	60.2%	47.3%	55.0%	70.4%	17.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	140.6%	74.9%	66.0%	38.1%	45.9%	21.4%	26.5%	71.0%
Return on invested capital	5.1%	5.5%	5.7%	4.9%	6.4%	4.4%	4.4%	5.0%
Return on assets	3.3%	3.9%	3.9%	3.2%	3.9%	2.3%	2.7%	10.7%
Free cash flow yield	15.0%	7.9%	6.4%	3.6%	5.1%	4.5%	4.2%	4.2%
Earnings yield	10.2%	5.8%	5.0%	3.7%	3.8%	2.5%	2.7%	12.4%
Enterprise value	$5.5B	$7B	$7.7B	$8.4B	$8.9B	$8.2B	$8.5B	$6.1B
Net debt / EBITDA	7.33×	6.57×	6.56×	7.05×	7.59×	8.35×	8.14×	2.86×
Cash conversion cycle (days)	14	11	15	23	14	28	19	19