| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 88 | 11.6x | 17.8x | Top tier | |
Growth | 19 | -1.0% | 7.1% | Bottom tier | |
Quality | 92 | 6.9% | 4.5% | Top tier | |
Safety | 30 | 6.7x | 2.6x | Bottom tier | |
Capital Return | 70 | 7.33% | 2.12% | Top tier | |
Momentum | 34 | -28.0% | 2.9% | Bottom tier | |
Sentiment | 85 | 17 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
The Wendy's Company operates the Wendy's brand in the quick-service restaurant sector, and its economic model relies on sales from company-operated restaurants, franchisee royalties, rental income, and franchise fees. The brand centers on made-to-order burgers using fresh, never-frozen beef, alongside vegetables prepared in restaurants, the Biggie value platform, and breakfast. In fiscal 2026 Q2, lower royalty and rental income pressured revenue, while higher sales from company-operated restaurants following the acquisition of franchised restaurants during fiscal 2025 Q3 limited the impact.
According to EDGAR filings, fiscal 2026 Q2 revenue was approximately $570.6 million, gross profit was $363.3 million, net income was $32.6 million, and earnings per share were $0.17; equivalent to a gross profit margin of approximately 63.7% and a net margin of approximately 5.7%. Compared with fiscal 2026 Q1, revenue increased from $540.6 million, gross profit from $339.6 million, and net income from $22.7 million. On a trailing 12-month basis in fiscal 2026, the company recorded revenue of $2.2 billion, net income of $126.1 million, and earnings per share of approximately $0.66, compared with net income of $165.1 million and earnings per share of $0.85 in fiscal 2025.
Operating indicators reveal a clear divergence between the U.S. and international markets in fiscal 2026 Q2. Global systemwide sales declined 6.5%, and U.S. same-restaurant sales fell 7.0% due to a 12.5% decline in traffic, while the average check increased 5.6%. Internationally, systemwide sales grew 3.4%, supported by restaurant openings, despite a 2.3% decline in same-restaurant sales; excluding Canada, international sales increased 8.6% and same-restaurant sales recorded positive growth.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on WEN is neutral, with an average price target of $7.58, a high target of $12, and a low target of $5.50; the average is well below the 52-week range high of $10.45, while the low target is below the range low of $6.07. The data do not include a consistent, reliable price-to-earnings ratio, while the wide range of targets reflects significant disagreement over the impact of declining traffic, the withdrawal of the fiscal 2026 outlook, and the acquisition possibility that lost momentum on August 26, 2026.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Wendy's global systemwide sales declined 6.5%, and U.S. same-restaurant sales fell 7.0% in fiscal 2026 Q2. The most significant reason was a 12.5% decline in U.S. traffic, with an additional impact from reduced discounting and shorter or eliminated breakfast hours at some locations. A 5.6% increase in the average check offset part of the decline, but it was not enough to return sales to growth. The Chicken Sandwich platform and the Minions & Monsters campaign also did not deliver the expected increase in traffic.
On August 7, 2026, management identified five transformation pillars covering menu quality and value, marketing, operational excellence, the digital experience, and restaurant investment. It intends to rebuild the menu across ingredients, items, and categories while reviewing the pricing structure and the Biggie platform. It also invested $8.3 million in technology initiatives during fiscal 2026 Q2 to improve the app and enable targeted marketing. The company will measure progress through traffic, customer satisfaction, franchisee economics, and returns on the investments it decides to scale.
An August 12, 2026 report indicated that Nelson Peltz's Trian Fund Management was preparing to submit an offer to acquire Wendy's in partnership with an investor group. The report caused the stock to rise sharply and trading to be temporarily halted due to volatility, making the possibility of a deal an important value catalyst. However, an August 26, 2026 report said that Trian had scaled back its ambitions to take the company private. Therefore, the thesis has become less dependent on a potential acquisition premium and more tied to Wendy's ability to repair traffic and margins.
Wendy's ended fiscal 2026 Q2 with approximately $380 million in cash and generated $120.3 million in free cash flow during the first half, an increase of $10.8 million from the comparable period. The company reduced the quarterly dividend to $0.07 per share and does not expect to repurchase shares during fiscal 2026, providing greater investment flexibility. In contrast, net leverage was 5.0 times, and management expects it to remain elevated in the near term. It also expects to refinance approximately $430 million of debt in late 2026 or early 2027 before its March 2028 maturity.
Wendy's international systemwide sales grew 3.4% in fiscal 2026 Q2, supported by the opening of 27 restaurants. International sales increased 8.6% excluding Canada, with positive same-restaurant sales growth outside Canada. However, total international same-restaurant sales declined 2.3% because of consumer weakness and competition in Canada. Therefore, international expansion provides meaningful support, but it did not offset the 6.5% decline in global systemwide sales.
According to EDGAR, Wendy's generated revenue of $570.6 million, gross profit of $363.3 million, and net income of $32.6 million in fiscal 2026 Q2. These results equate to a gross profit margin of approximately 63.7% and a net margin of approximately 5.7%, with earnings per share of $0.17. In management's presentation, the margin at company-operated restaurants was 13.6% globally and 13.8% in the United States. Adjusted earnings before interest, taxes, depreciation, and amortization declined by $22.5 million to $124.1 million due to weak royalties, higher expenses, and lower restaurant margins.
