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The Wendy's Company

WEN
44
Restaurants · Consumer Cyclical
Exchange
NASDAQ
Winston Score
44
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 28, 2026
How the score breaks down
Quality
Mixed
Growth
Weak
Cash Flow
Strong
Stability
Weak
Valuation
Strong
Dividends
Good

Winston Score History

The full picture

Wendy's is a fast-food chain best known for its square hamburgers, chicken sandwiches, and Frosty desserts. It serves everyday consumers looking for quick, affordable meals and competes directly with McDonald's and Burger King. With roughly 7,000 locations worldwide, it is one of the largest hamburger fast-food chains in the United States.

Most Wendy's restaurants are owned and operated by independent franchisees, so the company earns money mainly through royalty fees, rent, and a smaller number of company-owned locations. The majority of its restaurants are in North America, though it has a growing international presence. Wendy's competitive position relies on a reputation for fresher ingredients and menu quality relative to peers, but it faces ongoing pressure from rising food and labor costs, intense competition, and the challenge of driving traffic growth in a market where consumers are increasingly price-sensitive.

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Score breakdown

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Quality

Profit per sale
Gross Margin
32.4%
Modest — 32.4% gross margin
Profit after running costs
Operating Margin
13.9%
Healthy — 13.9% operating margin
Return on the money invested
ROCE
10.3%
Below par — 10.3% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-1.0%
Shrinking sales (-1.0% YoY)
Profit growth
EPS YoY
-32.0%
Earnings shrinking (-32.0% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
1/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
284%
Turns 284% of profit into real cash
Spare cash per sale
FCF Margin
12.0%
Modest free cash flow (12.0%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
22.82
Heavy debt load (22.82)
Covers its interest
Interest Cover
2.24x
Tight — interest eats into profit (2.2x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit
P/E Ratio (TTM)
13.7x
no trend
Attractive valuation — P/E 13.7

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+1.6
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend
Dividend Yield
6.57%
no trend
Healthy income — 6.57% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record
Dividend Growth
-37.2%
no trend
Dividend cut (-37.2% YoY) — warning sign

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