Wendy's is rated a buy, with turnaround potential after a ~50% stock drop, backed by their new efforts to revitalize the brand. WEN's Project Fresh targets 200–350 underperforming US closures, brand revitalization, and digital/AI initiatives, aiming to restore sales and customer satisfaction. International markets delivered 8.6% sales growth recently, offsetting some of the US weakness, with the solid free cash flow supporting a sustainable 6.6% dividend yield.
The Wendy's Company's stock appears to be bottoming, with valuation metrics looking attractive despite a prolonged slide and recent disappointing earnings. I maintain a hold rating on WEN, citing concerns over aggressive shareholder returns and the need for evidence that turnaround plans are gaining traction. Recent buybacks and high dividends are viewed as unsustainable and potentially harmful to WEN's long-term growth and turnaround prospects.
Although the revenue and EPS for Wendy's (WEN) give a sense of how its business performed in the quarter ended September 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
| - Industry | - Sector | Kenneth Cook CEO | NASDAQ (NGS) Exchange | 95058W100 CUSIP |
| US Country | 4,833 Employees | 1 Dec 2025 Last Dividend | 10 Sep 1985 Last Split | 17 Mar 1992 IPO Date |
The Wendy's Company, having evolved significantly since its inception, operates as a key player in the quick-service restaurant sector both within the United States and at an international level. With its operations segmented into Wendy's U.S., Wendy's International, and Global Real Estate & Development, the company demonstrates a broad and adaptable approach to its business strategy. Initially known as Wendy's/Arby's Group, Inc., the organization underwent a rebranding to The Wendy's Company in July 2011, marking a pivotal moment in its history. Founded in 1969 and with its headquarters nestled in Dublin, Ohio, The Wendy's Company has a rich heritage of being a pioneer in the fast food industry, notably for its hamburger sandwiches.
Specializing in hamburger sandwiches, The Wendy's Company has carved a niche for itself in the quick-service restaurant industry. Offering a diverse range of hamburgers that have gathered a loyal customer base, the company focuses on quality, flavor, and innovation to stand out in a competitive market.
At the core of its business model, The Wendy's Company is deeply involved in the operation, development, and franchising of quick-service restaurants. This multifaceted approach allows for a wide-reaching impact across various markets, ensuring the brand's presence is felt in numerous communities both in the U.S. and internationally.
A unique aspect of The Wendy's Company's strategy involves owning and leasing real estate properties. This facet of the business not only supports its operational goals but also establishes a solid foundation for growth and expansion. By investing in real estate, the company secures strategic locations for current and future restaurant sites, underscoring its long-term vision.