# The Wendy's Company (WEN) — Stock CV

The Wendy's Company is a $1.19B consumer company. Revenue shrank 1.0% over the last year, it keeps 6¢ of every dollar of sales as profit, and its net debt equals ~9.2 years of free cash flow. It trades at 9.9× earnings — in the cheapest third of its own history.

> The Wendy's Co is engaged in operating, developing, and franchising a system of distinctive quick-service restaurants serving high-quality food. The company operates through Wendy's U.S., Wendy's International, and Global Real Estate & Development.

## Identity

- **Ticker**: WEN
- **Sector**: Consumer Cyclical
- **Industry**: Retail-Eating & Drinking Places
- **Headquarters**: DUBLIN, OH
- **Employees**: 14 900
- **Website**: https://www.wendys.com
- **Market cap**: $1.19B
- **Last price**: $6.24
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $2.20B
- **Net income**: $126M
- **Free cash flow**: $264M
- **Net debt**: $2.43B
- **P/E**: 9.9
- **Revenue growth (YoY)**: -1.0%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 100 |
| Growth | 26 |
| Profitability | 55 |
| Health | 36 |
| Quality | 85 |
| Moat | 68 |

## Qualifications (beginner checklist) — 7 of 11 passed

- [ ] Revenue growing — -1.0% YoY
- [x] Profitable — $126M TTM
- [x] Profit growing — +1.2% YoY
- [x] Generates cash — $264M TTM
- [ ] Debt under control — ~9.2y of cash flow to repay
- [ ] Established company — $1.19B market cap
- [x] Not printing shares — -14.3% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — Altman Z 0.7 — distress
- [x] Pays a dividend — yield 8.51%
- [x] Valuation not extreme — P/E 9.9

## Experience (career milestones)

- **FY2018** — Best year on record: $460M net income
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $1.44B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **Apr 24, 2008** — Triarc announced the acquisition of Wendy's International, the fast food company
- **2000** — Snapple, Mistic, and Stewart's (formerly Cable Car Beverage) was sold by Triarc to candy company Cadbury Schweppes…
- **1993** — As part of its acquisition by Trian, DWG's name was changed to Triarc Companies, Inc in 1993
- **1986** — Posner approached one of his backers, Carl Lindner, Jr. for assistance, but by 1986, Lindner's American Financial…
- **1984** — DWG bought beverage company Royal Crown Cola and its fast food subsidiary Arby's through a hostile takeover in 1984
- **1965** — DWG Cigar changed its name to DWG…
- **May 15, 1946** — The company changed its name to DWG Cigar Corporation on May 15, 1946
- **1930** — DWG was a small firm, and to maintain market share, it purchased other small cigar companies like Odin cigars in…
- **Jan 23, 1929** — Deisel-Wemmer incorporated as Deisel-Wemmer-Gilbert Corporation (DWG)
- **1884** — The present-day Wendy's Company had several predecessors, the oldest of which (Deisel-Wemmer Co., a cigar…

## Strengths

- High gross margin (59.8%)

## Watch-outs

- Revenue shrinking 1.0% year over year
- Altman Z-Score 0.68 — elevated financial-distress risk
- Net debt would take ~14.1 years of free cash flow to repay
- Net debt equals ~9.2 years of free cash flow

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $1.90B | $200M | $268M |
| FY2022 | $2.10B | $177M | $174M |
| FY2023 | $2.18B | $204M | $260M |
| FY2024 | $2.25B | $194M | $261M |
| FY2025 | $2.18B | $165M | $243M |

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Source: https://stockcv.com/WEN — derived from company filings; may be delayed or incomplete. Information, not investment advice.