📊 WEN Key Takeaways
Is Wendy's Co (WEN) a Good Investment?
Wendy's faces deteriorating fundamentals with revenue declining 3.1% and net income falling 15.1% YoY, combined with extreme financial leverage (23.84x D/E ratio) and dangerously thin interest coverage of 1.1x. The minimal equity cushion of $115.6M against $4.8B in liabilities creates substantial financial distress risk, despite positive free cash flow generation.
Why Buy Wendy's Co Stock? WEN Key Strengths
- Generating positive free cash flow of $47.5M with 8.8% FCF margin
- Strong liquidity position with 1.83x current ratio and $298.7M cash reserves
- Operating margin of 12.0% remains reasonable for quick-service restaurant operator
WEN Stock Risks: Wendy's Co Investment Risks
- Extreme leverage of 23.84x D/E ratio with only $115.6M equity against $4.8B liabilities creates severe financial distress vulnerability
- Interest coverage ratio of 1.1x provides minimal safety margin; operating income barely covers debt service with no cushion for business deterioration
- Negative growth trajectory with revenue down 3.1% YoY and profitability declining faster at 15.1%, indicating margin compression and operational challenges
Key Metrics to Watch
- Interest coverage ratio trend - any decline below 1.0x signals insolvency risk
- Free cash flow sustainability - must remain positive to service $2.8B long-term debt
- Revenue trajectory reversal - current -3.1% YoY decline must stabilize or company faces debt refinancing challenges
Wendy's Co (WEN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Wendy's Co presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
WEN Profit Margin, ROE & Profitability Analysis
WEN vs Consumer Sector: How Wendy's Co Compares
How Wendy's Co compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Wendy's Co Stock Overvalued? WEN Valuation Analysis 2026
Based on fundamental analysis, Wendy's Co has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Wendy's Co Balance Sheet: WEN Debt, Cash & Liquidity
WEN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Wendy's Co's revenue has grown significantly by 18% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.97 reflects profitable operations.
WEN Revenue Growth, EPS Growth & YoY Performance
WEN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $523.5M | $22.7M | $0.12 |
| Q3 2025 | $549.5M | $39.2M | $0.23 |
| Q2 2025 | $560.9M | $39.2M | $0.27 |
| Q1 2025 | $523.5M | $39.2M | $0.19 |
| Q3 2024 | $550.6M | $39.8M | $0.25 |
| Q2 2024 | $561.6M | $39.8M | $0.27 |
| Q1 2024 | $528.8M | $39.8M | $0.19 |
| Q3 2023 | $532.6M | $37.4M | $0.24 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Wendy's Co Dividends, Buybacks & Capital Allocation
WEN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Wendy's Co (CIK: 0000030697)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WEN
What is the AI rating for WEN?
Wendy's Co (WEN) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WEN's key strengths?
Claude: Generating positive free cash flow of $47.5M with 8.8% FCF margin. Strong liquidity position with 1.83x current ratio and $298.7M cash reserves.
What are the risks of investing in WEN?
Claude: Extreme leverage of 23.84x D/E ratio with only $115.6M equity against $4.8B liabilities creates severe financial distress vulnerability. Interest coverage ratio of 1.1x provides minimal safety margin; operating income barely covers debt service with no cushion for business deterioration.
What is WEN's revenue and growth?
Wendy's Co reported revenue of $540.6M.
Does WEN pay dividends?
Wendy's Co pays dividends, with $26.6M distributed to shareholders in the trailing twelve months.
Where can I find WEN SEC filings?
Official SEC filings for Wendy's Co (CIK: 0000030697) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WEN's EPS?
Wendy's Co has a diluted EPS of $0.12.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WEN a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Wendy's Co has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is WEN stock overvalued or undervalued?
Valuation metrics for WEN: ROE of 19.7% (sector avg: 18%), net margin of 4.2% (sector avg: 8%). Higher ROE suggests strong returns relative to peers.
Should I buy WEN stock in 2026?
Our dual AI analysis gives Wendy's Co a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WEN's free cash flow?
Wendy's Co's operating cash flow is $59.4M, with capital expenditures of $11.9M. FCF margin is 8.8%.
How does WEN compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 4.2% (avg: 8%), ROE 19.7% (avg: 18%), current ratio 1.83 (avg: 1.5).
Is Wendy's Co carrying too much debt?
WEN has a debt-to-equity ratio of 23.84x, which is above the Consumer sector average of 0.8x. However, the current ratio of 1.83 suggests adequate short-term liquidity.