Wendy's Company (The) Common Stock (WEN)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I ask whether Wendy’s earns more than its cost of capital and whether the price offers protection. The company operates and franchises quick-service restaurants through U.S., international, and real-estate segments. In fiscal Q2 2026, the quarter ended 2026-06-28, revenue was $570.6M and net income was $32.6M, or diluted EPS $0.17; in fiscal Q2 2025, net income was $55.1M and diluted EPS $0.29. For FY2025, filed figures show net income of $165.1M and diluted EPS of $0.85, down from FY2024’s $194.4M and $0.95 and FY2023’s $204.4M and $0.97. That is not a compounding record. The computed Lynch category is SLOW GROWER, with profit growing 7.0% a year over five years and revenue 4.7%. The brand and franchise model are real assets, but a ROCE of 3.82% and an Altman Z-Score of 0.53 suggest weak capital returns and balance-sheet risk. On the plus side, trailing free cash flow is $264.2M, a 21.8% FCF yield against the $1.2B market cap at the 2026-10-13 close of $6.35, and the dividend yield is 4.16%. Yet P/B is 10.41, the Graham Number is $3.06, and the margin of safety is -107.52%, meaning the price is far above a Graham-style floor. A P/E of 9.62 looks cheap only if earnings stabilize; profit growth of -42.11% and a FairStock Score of 49/100 argue caution. I would wait for sustained profit recovery, better ROCE, and lower leverage risk before calling this a sound value.

In plain English: Wendy’s runs and franchises fast-food restaurants, mainly hamburgers and chicken. It still produces cash and pays a dividend, but profits are shrinking and the stock price looks high compared with the company’s book value and a conservative value estimate. Based on the numbers supplied, the business looks weak-to-mixed and the price does not offer obvious bargain protection.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-28) · fiscal Q1 2026 10-Q (period ended 2026-03-29) · fiscal Q3 2025 10-Q (period ended 2025-09-28) · fiscal Q2 2025 10-Q (period ended 2025-06-29) · FY2025 10-K (period ended 2025-12-28) · FY2024 10-K (period ended 2024-12-29) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer