Is Wendys Stock a Good Investment?

Wendys Investment Advice

WEN

To provide specific investment advice or recommendations on The Wendys Co stock, we recommend investors consider the following general factors when evaluating The Wendys Co. This will help you to make an informed decision on whether to include Wendys in one of your diversified portfolios:

Examine Wendys' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Wendys' leadership team and their track record. Good management can help Wendys navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Hotels, Restaurants & Leisure space and any emerging trends that could impact Wendys' business and its evolving consumer preferences.
Compare Wendys' performance and market position to its competitors. Analyze how Wendys is positioned in terms of product offerings, innovation, and market share.
Check if Wendys pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Wendys' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in The Wendys Co stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if The Wendys Co is a good investment.

Sell

Buy

Strong Hold

Our recommendation tool can cross-verify current analyst consensus on The Wendys and to analyze the firm potential to grow in the current economic cycle. To make sure The Wendys Co is not overpriced, please check out all The Wendys fundamentals, including its current ratio, total asset, and the relationship between the ebitda and price to earnings to growth . Given that The Wendys has a price to earning of 43.12 X, we strongly advise you to confirm The Wendys market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevalent risk tolerance and investing horizon.

Market Performance	OK	Details
Volatility	Very steady	Details
Hype Condition	Low key	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Very Small	Details
Economic Sensitivity	Almost mirrors the market	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Strong	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Wendys Stock

Researching Wendys' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 89.0% of the company outstanding shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.87. The Wendys last dividend was issued on the 2nd of December 2024. The entity had 105:100 split on the 25th of March 1986.

To determine if Wendys is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Wendys' research are outlined below:

	The Wendys is unlikely to experience financial distress in the next 2 years
	The Wendys has a strong financial position based on the latest SEC filings
	Over 89.0% of the company outstanding shares are owned by institutional investors
	Latest headline from nypost.com: Wendy Williams guardian countersued by AE over controversial Lifetime documentary

Wendys Quarterly Cost Of Revenue

414.23 Million

Wendys uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in The Wendys Co. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Wendys' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	15th of February 2024 Upcoming Quarterly Report	View
	8th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	15th of February 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Wendys' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Wendys' investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2020-05-06	2020-03-31	0.1	0.09	-0.01	10
2018-05-08	2018-03-31	0.1	0.11	0.01	10
2017-05-10	2017-03-31	0.08	0.09	0.01	12
2017-02-16	2016-12-31	0.09	0.08	-0.01	11
2016-11-09	2016-09-30	0.1	0.11	0.01	10
2016-08-10	2016-06-30	0.09	0.1	0.01	11
2015-11-04	2015-09-30	0.08	0.09	0.01	12
2015-08-05	2015-06-30	0.09	0.08	-0.01	11

Know Wendys' Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Wendys is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading The Wendys Co backward and forwards among themselves. Wendys' institutional investor refers to the entity that pools money to purchase Wendys' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Dimensional Fund Advisors, Inc.	2024-09-30	4 M
Squarepoint Ops Llc	2024-06-30	3.5 M
Geode Capital Management, Llc	2024-09-30	3.1 M
Hhg Plc	2024-06-30	3 M
Royal Bank Of Canada	2024-06-30	2.9 M
Bank Of New York Mellon Corp	2024-06-30	2.7 M
Two Sigma Investments Llc	2024-09-30	2.1 M
Millennium Management Llc	2024-06-30	2 M
Two Sigma Advisers, Llc	2024-06-30	1.6 M
Trian Fund Management Lp	2024-09-30	30.5 M
Vanguard Group Inc	2024-09-30	22 M

Note, although Wendys' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Wendys' market capitalization trends

The company currently falls under 'Mid-Cap' category with a total capitalization of 3.74 B.

Market Cap

3.79 Billion

Wendys' profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.06	0.07
Return On Capital Employed	0.08	0.05
Return On Assets	0.04	0.04
Return On Equity	0.66	0.69

The company has Net Profit Margin of 0.09 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.16 %, which entails that for every 100 dollars of revenue, it generated $0.16 of operating income.

Determining Wendys' profitability involves analyzing its financial statements and using various financial metrics to determine if Wendys is a good buy. For example, gross profit margin measures Wendys' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Wendys' profitability and make more informed investment decisions.

Wendys' Earnings Breakdown by Geography

Evaluate Wendys' management efficiency

The Wendys has Return on Asset of 0.0434 % which means that on every $100 spent on assets, it made $0.0434 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.6434 %, implying that it generated $0.6434 on every 100 dollars invested. Wendys' management efficiency ratios could be used to measure how well Wendys manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Wendys' Return On Tangible Assets are very stable compared to the past year. As of the 30th of November 2024, Return On Assets is likely to grow to 0.04, while Return On Capital Employed is likely to drop 0.05. At this time, Wendys' Asset Turnover is very stable compared to the past year.

	Last Reported	Projected for Next Year
Book Value Per Share	1.48	1.40
Tangible Book Value Per Share	(8.03)	(7.63)
Enterprise Value Over EBITDA	13.96	10.74
Price Book Value Ratio	13.17	13.83
Enterprise Value Multiple	13.96	10.74
Price Fair Value	13.17	13.83
Enterprise Value	1.3 B	701.3 M

The Wendys Co benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.

Dividend Yield

0.054

Forward Dividend Yield

0.054

Forward Dividend Rate

Beta

0.783

Basic technical analysis of Wendys Stock

As of the 30th of November, Wendys maintains the Mean Deviation of 1.45, market risk adjusted performance of 0.1755, and Downside Deviation of 1.94. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of The Wendys Co, as well as the relationship between them.

Wendys' insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Wendys insiders, such as employees or executives, is commonly permitted as long as it does not rely on Wendys' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Wendys insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Matthew Spessard over three months ago Disposition of 160 shares by Matthew Spessard of Wendys at 17.12 subject to Rule 16b-3
		E Wunsch over a year ago Acquisition by E Wunsch of tradable shares of Wendys subject to Rule 16b-3

Wendys' Outstanding Corporate Bonds

Wendys issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. The Wendys uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Wendys bonds can be classified according to their maturity, which is the date when The Wendys Co has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	US950590AG46 Corp Bond US950590AG46	View
	Boeing Co 2196 Corp Bond US097023DG73	View
	HSBC Holdings PLC Corp Bond US404280DR76	View
	MPLX LP 52 Corp Bond US55336VAL45	View
	Morgan Stanley 3591 Corp Bond US61744YAK47	View

View All Wendys Corporate Bonds

Understand Wendys' technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Wendys' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0772
	Market Risk Adjusted Performance	0.1755
	Mean Deviation	1.45
	Semi Deviation	1.79
	Downside Deviation	1.94
	Coefficient Of Variation	1073.98
	Standard Deviation	1.91
	Variance	3.66
	Information Ratio	0.0212
	Jensen Alpha	0.0385
	Total Risk Alpha	(0.15)
	Sortino Ratio	0.0209
	Treynor Ratio	0.1655
	Maximum Drawdown	10.31
	Value At Risk	(2.45)
	Potential Upside	3.34
	Downside Variance	3.76
	Semi Variance	3.21
	Expected Short fall	(1.50)
	Skewness	(0.18)
	Kurtosis	0.8603

	Risk Adjusted Performance	0.0772
	Market Risk Adjusted Performance	0.1755
	Mean Deviation	1.45
	Semi Deviation	1.79
	Downside Deviation	1.94
	Coefficient Of Variation	1073.98
	Standard Deviation	1.91
	Variance	3.66
	Information Ratio	0.0212
	Jensen Alpha	0.0385
	Total Risk Alpha	(0.15)
	Sortino Ratio	0.0209
	Treynor Ratio	0.1655
	Maximum Drawdown	10.31
	Value At Risk	(2.45)
	Potential Upside	3.34
	Downside Variance	3.76
	Semi Variance	3.21
	Expected Short fall	(1.50)
	Skewness	(0.18)
	Kurtosis	0.8603

Consider Wendys' intraday indicators

Wendys intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Wendys stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	68679.93
	Daily Balance Of Power	(0.33)
	Rate Of Daily Change	0.99
	Day Median Price	18.39
	Day Typical Price	18.38
	Price Action Indicator	(0.12)
	Period Momentum Indicator	(0.17)
	Relative Strength Index	50.66

Wendys Corporate Filings

8K	18th of November 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
13A	12th of November 2024 An amended filing to the original Schedule 13G	View Verify
F4	8th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
F3	18th of September 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock	View Verify

Wendys time-series forecasting models is one of many Wendys' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Wendys' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Wendys Stock media impact

Far too much social signal, news, headlines, and media speculation about Wendys that are available to investors today. That information is available publicly through Wendys media outlets and privately through word of mouth or via Wendys internal channels. However, regardless of the origin, that massive amount of Wendys data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Wendys news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Wendys relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Wendys' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Wendys alpha.

Wendys Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Wendys can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

The Wendys Historical Investor Sentiment

Investor biases related to Wendys' public news can be used to forecast risks associated with an investment in Wendys. The trend in average sentiment can be used to explain how an investor holding Wendys can time the market purely based on public headlines and social activities around The Wendys Co. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Wendys' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Wendys and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Wendys news discussions. The higher the estimate score, the more favorable the investor's outlook on Wendys.

Wendys Corporate Management

Kevin Vasconi	Chief Officer	Profile
Carlos Ribas	Senior Regions	Profile
Gunther Plosch	Chief Officer	Profile
Deepak Ajmani	U Officer	Profile
Liz Geraghty	Chief International	Profile
Matthew OBrien	Chief Officer	Profile

Already Invested in The Wendys Co?

The danger of trading The Wendys Co is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Wendys is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Wendys. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile The Wendys is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether The Wendys offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Wendys' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of The Wendys Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on The Wendys Co Stock: