Is the business good?
How good a business is WEN?
The Wendy's Company earns 10.0% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
10.0%
Return on invested capital · cost of capital 9.0% · 0.99 points above what the capital costs: growth creates value
- Operating margin
- 15%
Operating margin · Restaurants median 8.6% · 12 months to Q1 2026
- Cash conversion
- 1.50×
Cash conversion · 1.28× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −5.3%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 16% |
| FY2021 | 19% |
| FY2022 | 17% |
| FY2023 | 18% |
| FY2024 | 17% |
| FY2025 | 16% |
Details›
- Gross margin12 months to Q1 2026
- 63%
- Operating margin12 months to Q1 2026
- 15%
- Net margin12 months to Q1 2026
- 6.8%
- Free cash flow margin
- 10%
- Revenue, trailing twelve months
- $2.19B
- Free cash flow, trailing twelve months
- $222M
- Net income, trailing twelve months
- $149M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 10.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.