Stock analysis · Bull Rankings model

WEN analysis

The Wendy's CompanyRestaurants. Scored on the same transparent model behind the daily rankings.

Restaurants
WEN
The Wendy's Company · Restaurants
FCF$264mC
Rev-1.0%D+
D/E
P/E13.6xA-
PEG1.73C+
37.2Score
$8.84$1.7B
1Y Target$7.79Analyst consensus · 19 analysts
5Y Target$9.83Compound horizon
10Y Target$12.61Long-dated conviction
FCF$264mTTM
C
FCF $264m — modest; watch for margin expansion
Rev-1.0%TTM YoY
D+
Revenue -1.0% — shrinking; needs a catalyst to reverse
D/E
D/E data unavailable — neutral default
P/E13.6x
A-
P/E 13.6 — cheaper than most Consumer Cyclical peers (≈25th pctile)
PEG1.73
C+
PEG 1.73 — modest premium; above fair value

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 37.2
Quality64.6
Growth13.0
Value61.5
Why this score
  • Cut its dividend
Entry · Margin of safety
52-week rangeMid-range
17% off the 12-month high
vs DCF fair value59% belowest. fair value ~$21
What the price assumes: free cash flow compounding at ~-17% a year for the next decade — vs the ~5% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability28% · Bgross profit ÷ total assets (Novy-Marx)
ROIC8.3% · Breturn on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Restaurants · market cap $1.7b. 17% off the 52-week high of $10.62. 19 sell-side analysts rate this a Hold with a mean 1-yr target of $7.79 (implying -12% upside).
Moat
Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong.
Risk
Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Horizon
1-3 yr $7.79 (19-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $9.83 at ~2% CAGR — dividend + buyback compounding. 10 yr $12.61 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

WEN vs the Top Picks average

PillarWENBook avgDiff
Quality0.650.84-0.19
Growth0.130.87-0.74
Value0.620.76-0.14

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-8.8 over 23 daily scores
From 46.0 (Jun 22) → 37.2 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change-14.9%
90-day change-15.6%
Forward EPS estimate$0.54

Over the last 90 days, what analysts expect WEN to earn is materially lower (-15.6%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
226
Position size
$1,998
4.0% of portfolio
Stop price
$6.63
25% below $8.84
$ at risk if stopped
$499.46
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

The Wendy's Company (WEN): score, valuation & FAQ

The Wendy's Company (WEN) is a Restaurants company that scores 37.2 out of 100 on the Bull Rankings quality-growth model — a weak reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are P/E (A-), while Rev (D+) rate weaker. On valuation, WEN sits about 59% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -17% annual free-cash-flow growth over the next decade.

Is WEN a good stock to buy?

Bull Rankings scores WEN 37.2 out of 100 on its quality-growth model, which is a weak reading. That is driven by P/E (A-). A score is a quantitative screen of The Wendy's Company's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does WEN score 37.2 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). WEN earns its highest marks on P/E (A-), and is held back by Rev (D+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is WEN overvalued or undervalued?

Based on $8.84, WEN sits about 59% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -17% annual free-cash-flow growth over the next decade. It trades at a 13.6x P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in WEN?

Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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