olivLaw · US equity research
The Wendy's Company WEN
Retail-Eating & Drinking Places · SIC 5810 · Vertical: Retail-Eating & Drinking Places (SIC 5810)
The Wendy's Company operates and franchises hamburger quick-service restaurants in the United States and abroad, ranking third globally by number of restaurants. In 2026 it is in a turnaround after U.S. sales declines, and its new leadership has withdrawn the annual outlook, so its trajectory is closely watched.
At the close of 04 Nov 2026, The Wendy's Company (WEN) stock was 7.65 USD (+5.23% on the day), with market capitalisation 1.5 bn USD, P/E 11.6 on diluted EPS of 0.66 USD over the last 12 months, dividend yield 7.32%, beta 0.52, 52-week range 6.10–9.12 USD. Latest reported quarter (Q2 2026): revenue of 570.6 m USD (+1.7% YoY), net income of 32.6 m USD (−40.8% YoY), diluted EPS 0.17 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 67.9
- strong (55–70)
- Bollinger (20, 2)
- 5.77 – 7.55
- above the upper band · %B 1.06 · band width 26.7%
- SMA 50 / 200
- 7.03 / 7.36
- mixed trend
- MACD (12, 26, 9)
- 0.13 / -0.03
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +25.4% | −1.1% | +26.5 pp | — |
| 3 months | −4.3% | −0.5% | −3.8 pp | — |
| 6 months | +15.0% | +4.4% | +10.6 pp | — |
| Year to date | −8.2% | +12.3% | −20.5 pp | — |
| 1 year | −13.9% | +13.5% | −27.5 pp | −16.8% |
| 3 years | −60.3% | +76.4% | −136.7 pp | +10.5% |
| 5 years | −66.3% | +63.7% | −130.0 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 28 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 566.7 m | 574.3 m | 523.5 m | 560.9 m | 549.5 m | 543.0 m | 540.6 m | 570.6 m |
| Cost of revenue | 195.6 m | 195.6 m | 188.2 m | 196.5 m | 204.3 m | 202.8 m | 201.0 m | 207.3 m |
| Operating income | 94.7 m | 96.0 m | 83.1 m | 104.3 m | 92.0 m | 64.0 m | 64.9 m | 79.3 m |
| Depreciation & amortisation | 37.0 m | 33.2 m | 36.5 m | 37.0 m | 38.4 m | 40.3 m | 40.6 m | 38.1 m |
| Interest expense | 31.3 m | 31.1 m | 31.5 m | 30.9 m | 31.5 m | 32.5 m | 34.1 m | 33.9 m |
| Pre-tax income | 69.7 m | 70.5 m | 54.9 m | 75.9 m | 63.2 m | 33.2 m | 34.2 m | 48.6 m |
| Income tax | 19.4 m | 23.0 m | 15.7 m | 20.8 m | 19.0 m | 6.7 m | 11.5 m | 16.0 m |
| Net income | 50.2 m | 47.5 m | 39.2 m | 55.1 m | 44.3 m | 26.5 m | 22.7 m | 32.6 m |
| Diluted EPS | 0.25 | 0.23 ≈ | 0.19 | 0.29 | 0.23 | 0.14 ≈ | 0.12 | 0.17 |
| Operating cash flow | 141.2 m ≈ | 68.6 m | 85.4 m | 60.6 m ≈ | 129.3 m ≈ | 69.3 m | 59.4 m | 100.6 m ≈ |
| Capex | 17.9 m ≈ | 42.0 m | 17.7 m | 21.4 m ≈ | 25.0 m ≈ | 37.9 m | 11.9 m | 19.6 m ≈ |
| Dividends paid | 50.8 m ≈ | 51.0 m | 49.4 m | 26.8 m ≈ | 26.7 m ≈ | 26.6 m | 26.6 m | 26.7 m ≈ |
| Share repurchases | 25.8 m ≈ | 17.3 m | 122.8 m | 63.7 m ≈ | 14.3 m ≈ | 0 | 0 | 1.9 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 23 percentile of its own 31-quarter history (min 7.0, median 19.8, max 43.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2017 | 2018 | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.2 bn | 1.6 bn | 1.7 bn | 1.7 bn | 1.9 bn | 2.2 bn | 2.2 bn | 2.2 bn |
| Revenue YoY | −34.6% | +30.0% | +7.5% | unavailable | +9.4% | +15.0% | +3.0% | −3.1% |
| Net income | 194.0 m | 460.1 m | 136.9 m | 117.8 m | 200.4 m | 204.4 m | 194.4 m | 165.1 m |
| Net income YoY | +20.4% | +137.1% | −70.2% | unavailable | +70.1% | +2.0% | −4.9% | −15.1% |
| Diluted EPS | 0.77 | 1.88 | 0.58 | 0.52 | 0.89 | 0.97 | 0.95 | 0.85 |
| Diluted EPS YoY | +57.1% | +144.2% | −69.1% | unavailable | +71.2% | +9.0% | −2.1% | −10.5% |
| net % | 15.9% | 28.9% | 8.0% | 6.8% | 10.6% | 9.4% | 8.7% | 7.6% |
| Free cash flow | 157.1 m | 154.4 m | 214.5 m | 215.4 m | 267.8 m | 260.4 m | 260.9 m | 242.6 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 28 Dec 2025
- Cash
- 300.8 m USD
- Financial debt
- 2.8 bn USD
- Net debt
- 2.5 bn USD
- Equity
- 117.4 m USD
- Total assets
- 5.0 bn USD
- Debt / equity
- 23.51x
- Current ratio
- 1.76x
- ROE
- 87.6%
- ROA
- 3.3%
- FCF margin
- 11.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.7 bn | 1.7 bn | 1.9 bn | 2.2 bn | 2.2 bn | 2.2 bn | SEC (XBRL)· 23 Feb 2026verified |
| Cost of revenue | 597.5 m | 614.9 m | 611.7 m | 794.5 m | 783.2 m | 791.7 m | SEC (XBRL)· 23 Feb 2026verified |
| Gross profit | 1.1 bn ≈ | 1.1 bn ≈ | 1.3 bn ≈ | 1.4 bn ≈ | 1.5 bn ≈ | 1.4 bn ≈ | SEC (XBRL)· 23 Feb 2026derived |
| Operating income | 262.6 m | 269.3 m | 367.0 m | 382.0 m | 371.4 m | 343.5 m | SEC (XBRL)· 23 Feb 2026verified |
| Depreciation & amortisation | 131.7 m | 132.8 m | 125.5 m | 135.8 m | 143.2 m | 152.2 m | SEC (XBRL)· 23 Feb 2026verified |
| EBITDA | 394.3 m ≈ | 402.1 m ≈ | 492.5 m ≈ | 517.8 m ≈ | 514.6 m ≈ | 495.7 m ≈ | SEC (XBRL)· 23 Feb 2026derived |
| Interest expense | 116.0 m | 117.7 m | 109.2 m | 124.1 m | 123.9 m | 126.5 m | SEC (XBRL)· 23 Feb 2026verified |
| Pre-tax income | 171.5 m | 152.8 m | 240.6 m | 279.4 m | 272.4 m | 227.2 m | SEC (XBRL)· 23 Feb 2026verified |
| Income tax | 34.5 m | 35.0 m | 40.2 m | 75.0 m | 78.1 m | 62.2 m | SEC (XBRL)· 23 Feb 2026verified |
| Net income | 136.9 m | 117.8 m | 200.4 m | 204.4 m | 194.4 m | 165.1 m | SEC (XBRL)· 23 Feb 2026verified |
| Diluted EPS | 0.58 | 0.52 | 0.89 | 0.97 | 0.95 | 0.85 | SEC (XBRL)· 23 Feb 2026verified |
| Weighted average diluted shares | 235.1 m | 228.0 m | 224.4 m | 211.5 m | 205.6 m | 194.0 m | SEC (XBRL)· 23 Feb 2026verified |
| Dividend per share | 0.42 | 0.29 | 0.43 | 1.00 | 1.00 | 0.67 | SEC (XBRL)· 23 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 300.2 m | 307.0 m | 249.4 m | 516.0 m | 450.5 m | 300.8 m | SEC (XBRL)· 23 Feb 2026verified |
| Receivables | 100.5 m | 93.7 m | 101.5 m | 104.8 m | 86.8 m | 105.0 m | SEC (XBRL)· 23 Feb 2026verified |
| Inventories | 3.9 m | 4.7 m | 5.9 m | 6.7 m | 6.5 m | 7.4 m | SEC (XBRL)· 23 Feb 2026verified |
| Current assets | 554.0 m | 687.6 m | 592.8 m | 837.7 m | 736.1 m | 618.0 m | SEC (XBRL)· 23 Feb 2026verified |
| Property, plant & equipment, net | 977.0 m | 915.9 m | 906.9 m | 891.1 m | 907.8 m | 937.8 m | SEC (XBRL)· 23 Feb 2026verified |
| Goodwill | 755.9 m | 751.0 m | 775.3 m | 773.7 m | 771.5 m | 774.1 m | SEC (XBRL)· 23 Feb 2026verified |
| Intangibles (excl. goodwill) | 1.2 bn | 1.2 bn | 1.3 bn | 1.2 bn | 1.2 bn | 1.2 bn | SEC (XBRL)· 23 Feb 2026verified |
| Total assets | 5.0 bn | 5.0 bn | 5.1 bn | 5.2 bn | 5.0 bn | 5.0 bn | SEC (XBRL)· 23 Feb 2026verified |
| Accounts payable | 22.7 m | 31.1 m | 41.2 m | 27.4 m | 28.5 m | 30.5 m | SEC (XBRL)· 23 Feb 2026verified |
| Short-term debt | 22.8 m | 29.0 m | 24.3 m | 29.3 m | 78.2 m | 29.8 m | SEC (XBRL)· 23 Feb 2026verified |
| Long-term debt | 2.3 bn | 2.2 bn | 2.4 bn | 2.7 bn | 2.7 bn | 2.7 bn | SEC (XBRL)· 23 Feb 2026verified |
| Current liabilities | 349.7 m | 413.3 m | 426.9 m | 381.9 m | 397.6 m | 351.1 m | SEC (XBRL)· 23 Feb 2026verified |
| Total liabilities | 4.5 bn | 4.5 bn | 4.7 bn | 4.9 bn | 4.8 bn | 4.8 bn | SEC (XBRL)· 23 Feb 2026verified |
| Equity | 516.4 m † | 549.6 m † | 436.4 m † | 309.8 m † | 259.4 m † | 117.4 m † | SEC (XBRL)· 23 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 288.9 m | 284.4 m | 345.8 m | 345.4 m | 355.3 m | 344.5 m | SEC (XBRL)· 23 Feb 2026verified |
| Capex | 74.5 m | 69.0 m | 78.0 m | 85.0 m | 94.4 m | 101.9 m | SEC (XBRL)· 23 Feb 2026verified |
| Free cash flow | 214.5 m ≈ | 215.4 m ≈ | 267.8 m ≈ | 260.4 m ≈ | 260.9 m ≈ | 242.6 m ≈ | SEC (XBRL)· 23 Feb 2026derived |
| Investing cash flow | -54.9 m | -68.3 m | -154.7 m | -86.5 m | -129.3 m | -150.8 m | SEC (XBRL)· 23 Feb 2026verified |
| Financing cash flow | -365.3 m | -157.9 m | -242.7 m | -504.3 m | -303.1 m | -344.0 m | SEC (XBRL)· 23 Feb 2026verified |
| Dividends paid | 96.4 m | 64.9 m | 94.8 m | 209.3 m | 204.4 m | 129.6 m | SEC (XBRL)· 23 Feb 2026verified |
| Share repurchases | 217.8 m | 62.2 m | 268.5 m | 189.6 m | 77.4 m | 200.8 m | SEC (XBRL)· 23 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 60 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 1.5 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet22
- Valuation86
- Quality73
- Growth20
- Returns100
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 8.80 – 87.51 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)28.61 – 87.51 (Mid 45.40)WACC 6.0% · starting FCFF 357.1 m USD · terminal value share of EV 85%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/EBITDAunavailable · not enough peers
- Peers: P/E32.68 – 43.94 (Mid 41.01)4 companies used · median multiple 62.2x · quartiles 49.6x – 66.7xBROS, CHA, SBUX, SHAK
- Dividend discount (DDM)8.80 – 11.84 (Mid 10.10)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 60/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 8.3% | 48 (on a fixed band) | 10% |
| Net margin · Quality | 5.7% | 86 (vs peers) | 6% |
| FCF conversion · Quality | 209.6% | 100 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | 4.7% | 39 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | -1.5% | 0 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | 5.3x | 0 (on a fixed band) | 10% |
| Interest coverage · Balance sheet | 2.3x | 12 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.9x | 91 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 11.6x | 100 (vs peers) | 10% |
| EV/EBITDA · Valuation | 8.4x | 60 (on a fixed band) | 10% |
| FCF yield · Valuation | 18.1% | 100 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 8.4% | 100 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 40.4% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet22/100 · 3/3 factors with a value
- Growth20/100 · 2/2 factors with a value
- Quality73/100 · 3/3 factors with a value
- Returns100/100 · 2/2 factors with a value
- Valuation86/100 · 3/3 factors with a value
Memo
Wendy's Co (WEN). Latest full fiscal year: 2025; data up to 2026-06-28.
Figures computed from the financial statements: revenue 2.2 bn USD in 2025; YoY growth -3.1%; net margin 5.7%; ROE 108.0%; net debt/EBITDA 5.3x.
The estimated value range is 28.61–43.94 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 41.01 USD, the price of 7.65 USD leaves a potential of 436.0% (value / price − 1) and a margin of safety of 81.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 60/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 5.7%
- FCF conversion: 209.6%
- Current ratio: 1.9x
- P/E (TTM): 11.6x
- FCF yield: 18.1%
- Shareholder yield (distributions): 8.4%
- Payout ratio (FCF): 40.4%
- The price is below the estimated value range
What contradicts it
- EPS CAGR 3Y: -1.5%
- Net debt / EBITDA: 5.3x
- Interest coverage: 2.3x
Versus the vertical median
Retail-Eating & Drinking Places (SIC 5810) · same industry (4-digit SIC) · compared with 7 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| SBUXStarbucks Corporation | 125.1 bn | 63.2 | — | 5.2% | +2.8% | +26% / +10% |
| BROSDutch Bros Inc. | 6.8 bn | 61.3 | 12.9% | 4.9% | +27.9% | −25% / +65% |
| CHAChagee Holdings Ltd. | 2.4 bn | 14.5 | 16.0% | 9.1% | unavailable | −15% / unavailable |
| WENWendy's Co | 1.5 bn | 11.6 | 108.0% | 5.7% | −3.1% | −14% / −60% |
| CNNECannae Holdings, Inc. | 792.4 m | — | -13.3% | -38.2% | −6.4% | +13% / +2% |
| SDOTSadot Group Inc. | 7.8 m | — | -486.7% | -24.1% | −64.8% | −90% / −99% |
| BRCBBlack Rock Coffee Bar, Inc. | — | 190.7 | 2.8% | 0.7% | +24.5% | −52% / unavailable |
| SHAKShake Shack Inc. | — | 77.2 | 7.7% | 2.6% | +15.4% | −17% / +20% |
1- and 3-year price returns: for WEN from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 4.55 Total return -35% · Per year -35% | 8.04 Total return 13% · Per year 13% | 12.10 Total return 67% · Per year 67% |
| 3 years | 4.43 Total return -25% · Per year -9% | 8.81 Total return 39% · Per year 12% | 14.56 Total return 121% · Per year 30% |
| 5 years | 4.32 Total return -15% · Per year -3% | 9.65 Total return 68% · Per year 11% | 17.52 Total return 185% · Per year 23% |
- Exit P/E± 2.20
- Net margin± 1.54
- Annual revenue growth± 1.26
- Annual dilution± 0.13
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
The Wendy's Company operates and franchises hamburger quick-service restaurants in the United States and abroad, ranking third globally by number of restaurants. In 2026 it is in a turnaround after U.S. sales declines, and its new leadership has withdrawn the annual outlook, so its trajectory is closely watched.123
SWOT
Strengths
- The brand is well known, backed by a large restaurant base and an extensive franchise network in the U.S. and abroad 1.
- The franchise model brings royalty and rental income that does not depend on operating each restaurant directly 1.
- The company has a developed digital infrastructure, with apps and loyalty programs that have raised the share of online sales 1.
Weaknesses
- U.S. same-restaurant sales have repeatedly declined, and customer traffic has stayed below expectations 13.
- Margins at Company-operated restaurants have narrowed, especially in the U.S., because of higher costs 3.
- The company withdrew its 2026 outlook and cut its dividend, signaling uncertainty about strategic direction 3.
Opportunities
- A more attractive menu at a good price and more effective marketing could bring customers back to restaurants 23.
- International markets, where sales have grown, could support long-term development 3.
- If the digital experience becomes more seamless, visit frequency could rise and reduce reliance on in-person traffic 2.
Risks
- Competition and falling traffichigh
Better-resourced competitors and frequent price cuts could take customers from Wendy's, and lower traffic directly hits royalty revenue 1.
- Brand trustmedium
Incidents involving food quality, safety or franchisee conduct could quickly damage the brand's reputation, especially on social media 1.
- Costs and marginshigh
Rising commodity and labor costs could reduce margins at Company-operated restaurants, which already happened in 2026 13.
- Franchisee relationsmedium
The financial health of franchisees affects restaurant investment and system development, and pressure on their economics could slow growth plans 13.
- Chinese franchise partnerlow
The franchise partner in China has had leadership changes, and the agreement can be terminated without liability before December 2026, which could affect international expansion plans 2.
Investment thesis
What would need to be true (bull case)
- If the turnaround plan brings traffic back to U.S. restaurants, royalty income could recover, and the large franchise base could support profitability.
- Growth in the international system and the high share of digital sales could provide a base for expansion even while the U.S. remains weak.
- Free cash flow in the first half of 2026 and lower capital spending could give the company flexibility to fund the turnaround.
What would break the thesis
- If the decline in U.S. same-restaurant sales continues, royalty and Company-operated restaurant revenues could keep falling.
- Withdrawing the outlook and cutting the dividend show the turnaround plan is still being formed, and results may take time to appear.
- Cost pressure and price competition could prevent margins at Company-operated restaurants from recovering.
What to watch
- Quarterly results and trend in U.S. same-restaurant salesQ3 2026
- Full turnaround plan and new financial outlook2027
- Decision on the Chinese franchise partner agreementbefore December 12, 2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Revenues come from two main sources: sales at Company-operated restaurants and franchise-related revenues, including royalties, franchise fees, national advertising fund contributions and rents 1. Most U.S. restaurants are run by franchisees, and the company does not sell food or supplies to them 1. Purchasing runs through a co-op, QSCC, which negotiates prices based on total system volume 1.
In the first half of 2026 the new leadership outlined a turnaround with five areas: a quality menu at compelling value, marketing that drives demand, operational excellence, a digital experience that builds frequency, and restaurants as an engine for growth 23. The company withdrew its 2026 financial outlook and reduced its dividend 3.
Segments
Wendy's U.S.
This segment covers operating and franchising restaurants in the U.S., with revenue from Company-operated sales and from royalties, fees and advertising fund collections 1. The decline of recent years is concentrated here: U.S. same-restaurant sales fell in 2025 and kept falling in the second quarter of 2026 13.
Wendy's International
This segment covers restaurants in countries and territories outside the U.S., run directly or by franchisees 1. It is the stronger area: international systemwide sales grew in the first half of 2026, although same-restaurant sales eased slightly 3.
Global Real Estate & Development
This segment manages owned real estate and sites leased to franchisees, includes the share of the TimWen Canadian real estate joint venture, and earns fees from franchisee-to-franchisee transfers 1.
Market context
Wendy's competes in quick-service hamburgers, where it is the second largest U.S. company by traffic and dollar share and the third largest globally 1. The market is intensely competitive, with frequent price discounting and value menus 1. Global systemwide sales fell 3.5% in fiscal 2025 on a constant currency basis, mainly from the U.S. 1.
Competitive pressure also comes from outside restaurants: grocery chains, gas station stores and delivery services sell sandwiches and prepared food 1. The price gap between food prepared at home and restaurant food can shift traffic 1.
Trends
- Declining U.S. trafficheadwind
U.S. same-restaurant sales fell in 2025 and in the second quarter of 2026, pointing to pressure on customer traffic 13. If demand recovery is delayed, royalty income could stay under pressure.
- Digital channelstailwind
The share of digital sales grew in 2025, showing that apps and loyalty programs matter more for demand 1. If the digital experience improves, visit frequency could rise.
- Commodity and labor costsheadwind
Commodity and wage inflation eroded Company-operated restaurant margins in the first half of 2026 3. If menu prices do not offset these costs, margins could remain weak.
- Restaurant development and refranchisingmixed
The company opened new restaurants and acquired franchised restaurants in 2025, reflecting system optimization efforts 1. If these investments earn adequate returns, they could support long-term growth.
Competitive position
Wendy's competes with other fast-food chains, supermarkets, gas station stores and delivery services on quality, variety, convenience and price 1. Larger competitors have bigger marketing budgets, which may let them respond better to changing consumer tastes 1.
Rivalry also extends to locations, franchisees and personnel, and hamburger chains increasingly offer quality sandwiches and products for special diets 1. Wendy's differentiates with made-to-order square hamburgers and a diverse menu 1.
- Hamburger fast-food chains
Rivals in the same category that use price promotions and value menus, as described in the competition section of the annual report 1.
- Quality sandwich restaurant chains
Restaurants offering sandwiches made with fresh ingredients and artisan bread, competing on quality 1.
- Supermarket chains with prepared food
Grocery chains selling deli sandwiches and ready meals, including takeout options 1.
- Delivery platforms and gas station stores
Food delivery providers and gas station retail outlets selling prepared foods that compete for the same purchase 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Stocks making the biggest moves premarket: Shake Shack, Wendy's, Peloton, Unity Software & moreCNBC — Top News · 05 Nov 2026 · EN
- Wendy's rejects takeover proposal from Nelson Peltz’s TrianCNBC — Top News · 05 Nov 2026 · EN
- Stocks making the biggest moves midday: Wendy's, Wingstop, F5, Enphase Energy, Labcorp & moreCNBC — Top News · 28 Oct 2026 · EN
- Wendy's shares jump 15% as Nelson Peltz's Trian offers $1.4 billion to buy burger chainCNBC — Top News · 28 Oct 2026 · EN
- Why brands like E.l.f., Wendy's and Gap are branching out into original musicCNBC — Top News · 04 Oct 2026 · EN
- Meritage Hospitality Group files Chapter 11 bankruptcy over Wendy's strugglesYahoo Finance — News · 21 Sept 2026 · EN
- Why Wendy's Stock Flopped on FridayYahoo Finance — News · 18 Sept 2026 · EN
- Wendy's franchisee files for Chapter 11 bankruptcy protection as burger chain strugglesCNBC — Top News · 18 Sept 2026 · EN
- Why Wendy's Stock Withered on WednesdayYahoo Finance — News · 16 Sept 2026 · EN
- Why Wendy's Fell This WeekYahoo Finance — News · 28 Aug 2026 · EN
- Wendy's Falls on No Buyout Bid; Meta Moves on Settlement | Stock MoversBloomberg Markets · 27 Aug 2026 · EN
- Burger King overtakes Wendy's as the nation's second-largest burger chainCNBC World · 07 Aug 2026 · EN
- Wendy's Surges 37% Following Viral Reddit PostBloomberg Markets · 24 Jun 2026 · EN
SEC filings
- Current report17 Aug 2026Departure or appointment of officers
- Quarterly report07 Aug 2026
- Current report07 Aug 2026Results of operations · Financial statements and exhibits
- Current report28 Jul 2026Departure or appointment of officers
- Current report23 Jun 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report09 Jun 2026Departure or appointment of officers
- Current report22 May 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Current report20 May 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report08 May 2026
- Current report08 May 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-28 · SEC / The Wendy's Company · 23 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-28 · SEC / The Wendy's Company · 07 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / The Wendy's Company · 07 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.