ScoreWhy is The Wendy's Co. ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Operating profit has grown by an annual rate 8.88% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
Flat results in Jun 25
- DEBT-EQUITY RATIO (HY) Highest at 3,243.8 %
- CASH AND EQV(HY) Lowest at USD 913.45 MM
3
With ROCE of 15.03%, it has a very attractive valuation with a 3.05 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -54.63%, its profits have fallen by -6.7%
4
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -54.63% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to The Wendy's Co. should be less than 10%
- Overall Portfolio exposure to Leisure Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is The Wendy's Co. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
The Wendy's Co.
-52.16%
-1.45
33.48%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.88%
EBIT Growth (5y)
8.88%
EBIT to Interest (avg)
2.87
Debt to EBITDA (avg)
4.07
Net Debt to Equity (avg)
17.82
Sales to Capital Employed (avg)
0.71
Tax Ratio
29.01%
Dividend Payout Ratio
105.80%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
14.03%
ROE (avg)
70.51%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
39.60
EV to EBIT
20.29
EV to EBITDA
14.16
EV to Capital Employed
3.05
EV to Sales
3.35
PEG Ratio
NA
Dividend Yield
3.61%
ROCE (Latest)
15.03%
ROE (Latest)
155.01%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 355.86 MM
ROCE(HY)
Highest at 99.35%
INTEREST COVERAGE RATIO(Q)
Highest at 464.86
RAW MATERIAL COST(Y)
Fallen by -3.06% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 251.38 times
OPERATING PROFIT(Q)
Highest at USD 143.85 MM
OPERATING PROFIT MARGIN(Q)
Highest at 25.64 %
EPS(Q)
Highest at USD 0.29
-3What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 3,243.8 %
CASH AND EQV(HY)
Lowest at USD 913.45 MM
Here's what is working for The Wendy's Co.
Operating Cash Flow
Highest at USD 355.86 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Highest at 464.86
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at USD 143.85 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 25.64 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
EPS
Highest at USD 0.29
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Highest at 251.38 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -3.06% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 41.05 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for The Wendy's Co.
Debt-Equity Ratio
Highest at 3,243.8 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Cash and Eqv
Lowest at USD 913.45 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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