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The Wendy's Company
🏹 Trader: 🎯 Near 52W High | BRS 71 Forming View all →
$1.7B
Market Cap
9.8
P/E
5.74
PEG
10.8%
ROCE
172.9%
ROE
34.40
D/E
23.2%
OPM
-8.9%
% from 52W High
59
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for WEN including FX impact
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📈 Price History
Ratio Health
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About

The Wendy's Company, together with its subsidiaries, engages in the operation, development, and franchising of a system of quick-service restaurants in the United States and internationally.

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📈 Growth Pattern
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⭐ Superinvestors Holding WEN
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 2.34M $16.3M 0.03% Mar 2026
Steve Cohen Point72 Asset Management 14.4K $100K 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED Wendy's Q1 2026 sales down 5.5%; eyes flat full-year sales via Project Fresh turnaround
Revenue & Profitability
Global system-wide sales decreased 5.5% year-over-year on a constant currency basis. U.S. same-restaurant sales fell 7.8%. Adjusted EBITDA was $111.3 million, down $13.2 million year-over-year. Adjusted EPS was $0.12. Free cash flow was $36.5 million, down $31.5 million. Net leverage ratio ended at 4.9 times. The company maintained its full-year 2026 adjusted EBITDA guidance of $460-480 million and adjusted EPS of $0.56-0.60.
Outlook
Management expects the challenging competitive environment and consumer pressure, particularly among lower-income consumers, to persist. Gas prices and inflation are top of mind. The company anticipates sequential quarterly improvement in U.S. same-restaurant sales throughout 2026 as Project Fresh initiatives compound. Full-year global system-wide sales are expected to be approximately flat, with Q2 declining mid-single digits and growth returning in the back half.
Growth Drivers
Key growth levers include the Project Fresh turnaround in the U.S. (brand revitalization, operational excellence, system optimization), international expansion (notably the new franchise agreement to build up to 1,000 restaurants in China over 10 years), and menu innovation (Biggie Deals, upgraded chicken sandwich, upcoming Minions collaboration, Pretzel Bacon Pub Cheeseburger). Late night is the best-performing daypart.
Balance Sheet & CapEx
Full-year 2026 capital expenditures, including build-to-suit investments, are expected between $120 million and $130 million. In Q1, the company invested $16.5 million, including $5.4 million in technology initiatives (e.g., AI recommendation engine, app enhancements) and $9.1 million in restaurant development (build-to-suit program). Investments are prioritized in U.S. profitable AUV growth over new unit development and in international market expansion.
Margins
U.S. company-operated restaurant margin was 11.4% in Q1, down year-over-year due to traffic decline, 8% commodity inflation (led by beef), 4% labor rate inflation, and quality investments, partially offset by higher average check and labor efficiencies. Full-year 2026 U.S. company-operated restaurant margin guidance is 13% ±50 basis points, with commodity inflation moderating to ~4% for the full year (high single digits in H1, low single digits in H2) and labor inflation of ~4%. General and administrative expense is expected to be ~$295 million.
Key Risks
Risks noted in the call include: ongoing pressure on the lower-income consumer due to rising gas prices and inflation; the impact of system optimization (expected net headwind of $15-20 million to adjusted revenue in 2026); franchisee financial pressure from sales declines and commodity inflation; weather impacts (about 1 point to Q1 sales); and uncertainty around the exact timing of the turnaround. The company also flagged geopolitical noise in the Middle East, though that region is a small portion of international sales.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-07
Systemwide sales and traffic declined sharply, prompting leadership to withdraw guidance and outline a turnaround plan focused on menu quality, branding, operations, digital, and asset investment. Margin and EBITDA pressure are expected to persist amid ongoing consumer and cost headwinds.
Q1 2026 Q1 2026 2026-05-08
Q1 2026 saw a 5.5% global sales decline, mainly from U.S. softness, but international growth and operational improvements are supporting a flat full-year outlook. Project Fresh initiatives, menu upgrades, and a major China expansion are expected to drive sequential improvement.
Q4 2025 Q4 2025 2026-02-13
Q4 and full-year 2025 saw U.S. sales declines offset by strong international growth and digital gains. Project Fresh turnaround initiatives are underway, with 2026 expected to be a rebuilding year and system optimization impacting sales. Adjusted EBITDA is guided at $460–$480 million.
Q3 2025 Q3 2025 2025-11-07
Project Fresh is driving a strategic shift toward AUV growth, with U.S. sales under pressure but international markets delivering strong results. System optimization may lead to U.S. closures, while capital is being redirected to technology and brand initiatives.
Q2 2025 Q2 2025 2025-08-08
Global sales declined 1.8% as U.S. same restaurant sales fell, but international growth remained strong. Full-year guidance was lowered due to persistent consumer and competitive pressures, while technology and menu innovation are expected to drive future improvement.
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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