Latest Ratios: P/E Ratio 9.2x · EV/EBITDA 10.6x · ROE 87.6%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.5B | $1.6B | $3.4B | $4.1B | $4.9B | $5.4B | $5.0B | $5.2B | $3.8B | $4.1B | $3.6B |
| Enterprise Value | $5.3B | $5.5B | $7.0B | $7.7B | $8.4B | $9.0B | $8.4B | $8.6B | $6.2B | $6.7B | $5.9B |
| P/E Ratio → | 9.15 | 9.82 | 17.37 | 20.08 | 27.60 | 26.80 | 42.15 | 38.21 | 8.31 | 21.32 | 27.59 |
| P/S Ratio | 0.68 | 0.74 | 1.51 | 1.89 | 2.33 | 2.82 | 2.88 | 3.05 | 2.41 | 3.39 | 2.51 |
| P/B Ratio | 12.86 | 13.80 | 13.08 | 13.30 | 10.49 | 12.26 | 9.09 | 10.09 | 5.90 | 7.23 | 6.83 |
| P/FCF | 6.11 | 6.68 | 13.00 | 15.82 | 28.01 | 19.99 | 23.20 | 24.29 | 24.80 | 26.37 | 82.32 |
| P/OCF | 4.30 | 4.70 | 9.55 | 11.93 | 18.79 | 15.48 | 17.58 | 18.03 | 17.08 | 17.35 | 18.60 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.51 | 3.13 | 3.55 | 4.02 | 4.72 | 4.83 | 5.05 | 3.89 | 5.50 | 4.12 |
| EV / EBITDA | 10.58 | 10.86 | 13.29 | 14.60 | 17.22 | 18.19 | 20.81 | 21.87 | 16.32 | 19.76 | 13.48 |
| EV / EBIT | 16.03 | 15.45 | 17.75 | 19.19 | 23.02 | 25.61 | 30.93 | 30.00 | 8.90 | 30.70 | 18.71 |
| EV / FCF | — | 22.52 | 26.96 | 29.74 | 48.29 | 33.46 | 38.85 | 40.20 | 40.05 | 42.82 | 135.15 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 26.9% | 26.9% | 35.2% | 35.6% | 34.4% | 28.3% | 35.8% | 35.4% | 37.9% | 49.1% | 42.4% |
| Operating Margin | 15.3% | 15.3% | 16.5% | 17.5% | 16.9% | 19.3% | 15.5% | 15.4% | 15.7% | 17.6% | 21.9% |
| Net Profit Margin | 7.6% | 7.6% | 8.7% | 9.4% | 8.5% | 10.6% | 6.8% | 8.0% | 28.9% | 15.9% | 9.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 87.6% | 87.6% | 68.3% | 52.7% | 39.3% | 40.6% | 22.1% | 23.5% | 75.3% | 35.2% | 20.2% |
| ROA | 3.3% | 3.3% | 3.8% | 3.8% | 3.3% | 4.0% | 2.3% | 2.9% | 11.0% | 4.8% | 3.2% |
| ROIC | 6.3% | 6.3% | 7.1% | 7.2% | 6.6% | 6.9% | 5.1% | 5.7% | 6.1% | 5.4% | 8.3% |
| ROCE | 7.2% | 7.2% | 7.9% | 7.7% | 7.2% | 7.9% | 5.8% | 6.1% | 6.3% | 5.7% | 8.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 35.31 | 35.31 | 15.78 | 13.36 | 9.19 | 8.84 | 6.69 | 7.19 | 4.29 | 4.81 | 4.76 |
| Debt / EBITDA | 8.24 | 8.24 | 7.73 | 7.80 | 8.75 | 7.83 | 9.14 | 9.42 | 7.35 | 8.09 | 5.72 |
| Net Debt / Equity | — | 32.75 | 14.04 | 11.70 | 7.59 | 8.27 | 6.13 | 6.61 | 3.63 | 4.51 | 4.38 |
| Net Debt / EBITDA | 7.64 | 7.64 | 6.88 | 6.83 | 7.23 | 7.32 | 8.38 | 8.66 | 6.21 | 7.59 | 5.27 |
| Debt / FCF | — | 15.84 | 13.96 | 13.92 | 20.28 | 13.47 | 15.64 | 15.92 | 15.24 | 16.44 | 52.83 |
| Interest Coverage | 2.80 | 2.80 | 3.20 | 3.25 | 2.99 | 3.20 | 2.30 | 2.48 | 5.81 | 1.86 | 2.76 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.76 | 1.76 | 1.85 | 2.19 | 2.73 | 1.39 | 1.66 | 1.58 | 2.34 | 1.78 | 1.97 |
| Quick Ratio | 1.74 | 1.74 | 1.83 | 2.18 | 2.71 | 1.37 | 1.65 | 1.57 | 2.33 | 1.77 | 1.95 |
| Cash Ratio | 0.86 | 0.86 | 1.13 | 1.35 | 1.92 | 0.58 | 0.74 | 0.86 | 1.52 | 0.75 | 0.86 |
| Asset Turnover | — | 0.44 | 0.45 | 0.42 | 0.38 | 0.37 | 0.34 | 0.34 | 0.37 | 0.30 | 0.36 |
| Inventory Turnover | 215.50 | 215.50 | 223.08 | 210.03 | 192.84 | 229.25 | 235.07 | 283.54 | 267.63 | 197.17 | 289.98 |
| Days Sales Outstanding | — | 19.67 | 16.24 | 20.36 | 32.55 | 23.00 | 36.45 | 25.09 | 25.21 | 34.13 | 25.13 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 8.6% | 8.0% | 6.0% | 5.1% | 2.2% | 1.8% | 1.3% | 1.8% | 2.1% | 1.6% | 1.8% |
| Payout Ratio | 78.5% | 78.5% | 105.2% | 102.4% | 60.2% | 47.3% | 55.0% | 70.4% | 17.5% | 35.2% | 49.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.9% | 10.2% | 5.8% | 5.0% | 3.6% | 3.7% | 2.4% | 2.6% | 12.0% | 4.7% | 3.6% |
| FCF Yield | 16.4% | 15.0% | 7.7% | 6.3% | 3.6% | 5.0% | 4.3% | 4.1% | 4.0% | 3.8% | 1.2% |
| Buyback Yield | 13.5% | 12.4% | 2.3% | 4.6% | 1.1% | 5.0% | 1.2% | 4.2% | 7.0% | 3.0% | 9.3% |
| Total Shareholder Yield | 22.1% | 20.4% | 8.3% | 9.7% | 3.2% | 6.8% | 2.5% | 6.0% | 9.2% | 4.7% | 11.1% |
| Shares Outstanding | — | $194M | $206M | $212M | $216M | $224M | $228M | $235M | $245M | $252M | $267M |
Elevated Debt-to-Equity Ratio
According to current market data, Wendy's trades at a P/E of 9.18 and a P/S of 0.68, suggesting that investors are pricing in significant long-term stagnation compared to the broader QSR sector's higher valuation multiples.
The low P/E ratio relative to peers like McDonald's suggests that the market is discounting the company's ability to drive meaningful unit growth or margin expansion. This valuation appears to reflect a defensive stance, where the high dividend yield of 8.6% serves as the primary attraction for investors rather than capital appreciation.
Based on reported figures, Wendy's ROIC has remained consistently low, hovering between 1.1% and 2.0% over the last ten quarters, which indicates that the company is struggling to generate returns that exceed its cost of capital.
The persistent gap between ROE and ROIC suggests that the company's high leverage is artificially inflating equity returns while the underlying business operations fail to compound capital effectively. This trend warrants further investigation into whether the current asset-heavy model is fundamentally capable of delivering superior returns on invested capital.
As reported in financial statements, the company's cash conversion cycle has fluctuated between 9 and 22 days, indicating that timing differences in inventory and payables are creating periodic volatility in the company's operational liquidity.
The low asset turnover ratio of 0.11 suggests that the company's revenue generation is not scaling efficiently with its asset base, likely due to the mix of company-operated stores and real estate holdings. Investors should monitor whether these efficiency metrics improve as the company continues its re-franchising efforts.
According to recent SEC filings, the debt-to-equity ratio has surged to 35.63 in 2026Q1, a dramatic increase from 13.36 in 2023Q4, signaling that the company's reliance on debt financing has intensified significantly relative to its shrinking equity base.
The high leverage ratio, combined with interest coverage that has dipped as low as 1.74, suggests that the company's ability to service its debt is becoming increasingly sensitive to operational downturns. This level of indebtedness appears to limit management's strategic flexibility and increases the risk profile for equity holders.
As indicated by the company's unique franchising and real estate structure, the P/E ratio is frequently misapplied by analysts who fail to account for the significant non-cash depreciation and amortization charges inherent in the company's asset-heavy model.
Using P/E as the primary valuation metric obscures the true cash-generative capacity of the royalty and real estate streams, which are better captured by EV/EBITDA or P/FCF. Investors should prioritize cash-based metrics to avoid being misled by accounting-driven earnings volatility that does not reflect the underlying health of the franchise system.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying WEN stock.
The Wendy's Company's current P/E ratio is 9.2x. The historical average is 30.1x. This places it at the 16th percentile of its historical range.
The Wendy's Company's current EV/EBITDA is 10.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.2x.
The Wendy's Company's return on equity (ROE) is 87.6%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 16.4%.
Based on historical data, The Wendy's Company is trading at a P/E of 9.2x. This is at the 16th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Wendy's Company's current dividend yield is 8.58% with a payout ratio of 78.5%.
The Wendy's Company has 26.9% gross margin and 15.3% operating margin. Operating margin between 10-20% is typical for established companies.
The Wendy's Company's Debt/EBITDA ratio is 8.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.