The Wendy's Co

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WEN : NASDAQ : Services
$14.785 up 0.005 | 0.034%
Today's Range: 14.69 - 14.93
Avg. Daily Volume: 2834500.0
04/27/17 - 3:12 PM ET

Financial Analysis

WENDY'S CO's gross profit margin for the fourth quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its industry. WENDY'S CO has strong liquidity. Currently, the Quick Ratio is 1.54 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 29.90% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)309.9464.37
EBITDA ($mil)128.45167.37
EBIT ($mil)98.2133.62
Net Income ($mil)28.8985.86

Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)255.85370.09
Total Assets ($mil)3939.314108.72
Total Debt ($mil)2512.282426.11
Equity ($mil)527.74752.91

Profitability Q4 FY16 Q4 FY15
Gross Profit Margin54.5541.36
EBITDA Margin41.4436.04
Operating Margin31.6928.78
Sales Turnover0.360.46
Return on Assets3.293.92
Return on Equity24.5618.59
Debt Q4 FY16 Q4 FY15
Current Ratio1.972.29
Interest Expense29.3228.19
Interest Coverage3.354.74

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)246.57272.32
Div / share0.070.06
Book value / share2.142.76
Institutional Own % n/a n/a
Avg Daily Volume2745211.03766675.0


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 42.59 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 24.92. To use another comparison, its price-to-book ratio of 6.50 indicates a significant premium versus the S&P 500 average of 2.99 and a significant discount versus the industry average of 9.29. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, WENDY'S CO proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WEN 29.00 Peers 42.59   WEN 18.92 Peers 18.48

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

WEN is trading at a significant discount to its peers.


Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

WEN is trading at a valuation on par to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
WEN 24.86 Peers 24.79   WEN NM Peers 1.74

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

WEN is trading at a premium to its peers.


Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

WEN's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WEN 6.50 Peers 9.29   WEN 2.12 Peers 80.05

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

WEN is trading at a significant discount to its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, WEN is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WEN 2.39 Peers 3.33   WEN -23.26 Peers 2.67

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

WEN is trading at a significant discount to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

WEN significantly trails its peers on the basis of sales growth



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