At a glance
Wendy's Co is worth $1.35B, about 8 times its fiscal 2025 earnings. Revenue fell 3.1% to $2.18B in fiscal 2025, with 7.6% kept as profit; over 5 years it has grown 4.7% a year. It pays a 6.93% dividend yield, and returned $1.53B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −13.9% over the past year with dividends reinvested and −16.6% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 68.6% in the 2020 crash (S&P 500: 33.7%) and 32.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 7 months after the lows.
The business in plain English
Wendy's runs and franchises fast-food restaurants known for made-to-order hamburgers. The menu also has chicken sandwiches, nuggets, chili, fries, salads and Frosty desserts, and breakfast is served in the U.S. and Canada. The company calls itself the second-largest U.S. hamburger fast-food chain by traffic and dollar share, and the third-largest globally. As of December 28, 2025, it had 7,397 restaurants in the U.S. and 38 foreign countries and U.S. territories.
Most locations are franchised: independent owners run them under the Wendy's name and pay the company for that right. Franchisees ran 5,546 of the 5,969 U.S. restaurants and 1,417 of the 1,428 international ones. The company ran 423 in the U.S. and 11 in the U.K. Wendy's does not sell food or supplies to franchisees. In fiscal 2025, revenue was $2.18 billion. Company-run restaurant sales made up 42.1%, franchise royalties (a cut of franchisee sales) 23.2%, advertising fund contributions 19.4%, rent from franchisees 10.8% and franchise fees 4.5%.
By segment, Wendy's U.S. produced 82% of revenue, Global Real Estate & Development 11% and Wendy's International 7%. The real estate segment leases and subleases sites to franchisees and includes a share of TimWen, a Canadian restaurant real estate joint venture. In 2025 the company announced Project Fresh, a plan to lift U.S. traffic, sales per restaurant and franchisee profits.
Price history
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WEN -13.9% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Sales at Company-operated restaurants | $916.3M | 42.1% |
| Franchise royalty revenue | $504.5M | 23.2% |
| Advertising funds revenue | $422.1M | 19.4% |
| Franchise Rental Income | $235.8M | 10.8% |
| Franchise fees | $98.2M | 4.5% |
By business segment
| Wendy's U.S. | $1.79B | 82% |
| Global Real Estate & Development | $238.8M | 11% |
| Wendy's International | $153.0M | 7% |
By geography
| U.S. | $1.98B | 90.9% |
| International | $199.0M | 9.1% |
Latest results
- In Q2 FY2026 (ended Jun 28, 2026), revenue was $570.6M, up 1.7% from a year earlier, and net income was $32.6M (-40.8%).
- For fiscal 2025, revenue was $2.18B (-3.1% year over year; +4.7% a year from FY2020 to FY2025) with a 7.6% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +4.7% watch |
|---|---|
| Operating margin | 15.8% good |
| Free cash flow margin | 11.1% good |
| Return on equity (FY2025) | 140.6% (lifted by a small equity base, often the result of years of buybacks) good |
| Return on assets (FY2025) | 3.3% watch |
| Net cash (cash minus debt) | $-2.38B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.73B | $117.8M | $215.4M |
| FY2021 | $1.90B | $200.4M | $267.8M |
| FY2022 | $2.10B | $177.4M | $174.4M |
| FY2023 | $2.18B | $204.4M | $260.4M |
| FY2024 | $2.25B | $194.4M | $260.9M |
| FY2025 | $2.18B | $165.1M | $242.6M |
Valuation snapshot
| Market value | $1.35B |
|---|---|
| P/E ratio | 8.3 |
| Dividend yield | 6.93% |
Rank among 1514 US companies
Market value at each year end
Wendy's’s market value went from $3.48B at the end of 2016 to $1.35B on Oct 28, 2026, down 61%; since the end of 2025 it is down 15%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $1.35B | -15.0% |
| 2025 | $1.59B | -52.3% |
| 2024 | $3.32B | -17.3% |
| 2023 | $4.02B | -16.7% |
| 2022 | $4.82B | -8.4% |
| 2021 | $5.26B | +7.1% |
| 2020 | $4.91B | -3.8% |
| 2019 | $5.11B | +38.2% |
| 2018 | $3.70B | -7.1% |
| 2017 | $3.98B | +14.4% |
| 2016 | $3.48B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| WEN price data to Oct 28, 2026 | -11.2% | -13.9% | -23.8% | -16.6% | -1.0% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -11.2% |
| 2025 | -45.8% |
| 2024 | -11.4% |
| 2023 | -9.7% |
| 2022 | -2.7% |
| 2021 | +11.0% |
| 2020 | +0.1% |
| 2019 | +45.3% |
| 2018 | -2.9% |
| 2017 | +23.8% |
| 2016 | +28.5% |
| 2015 | +22.0% |
| 2014 | +6.1% |
| 2013 | +90.4% |
| 2012 | -10.4% |
| 2011 | +17.9% |
| 2010 | +0.3% |
| 2009 | -3.4% |
| 2008 | -36.3% |
| 2007 | -57.5% |
| 2006 | +39.3% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 68.1% over that stretch · deepest drop along the way 76.7%, back to its old high 75.2 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 50.7% over that stretch · deepest drop along the way 68.6%, back to its old high 4.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 17.9% over that stretch · deepest drop along the way 32.8%, back to its old high 7.1 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 0 sales ($0.00).
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 12.8% | Jun 30, 2026 |
| Vanguard Portfolio Management | 5.48% | Jun 30, 2026 |
| HARRIS ASSOCIATES L P | 3.1% | Mar 31, 2026 |
| AQR Capital Management, LLC | 1.64% | Mar 31, 2026 |
ETFs with the most weight in WEN
| DES WisdomTree U.S. SmallCap Dividend Fund | 0.67% |
| OUSM ALPS | O’Shares U.S. Small-Cap Quality Dividend ETF | 0.57% |
| SMMV iShares MSCI USA Small-Cap Min Vol Factor ETF | 0.48% |
| OASC OneAscent Small Cap Core ETF | 0.43% |
| QSML WisdomTree U.S. SmallCap Quality Growth Fund | 0.41% |
| HIDV AB US High Dividend ETF | 0.37% |
| SIXL ETC 6 Meridian Low Beta Equity ETF | 0.37% |
| XMHQ Invesco S&P MidCap Quality ETF | 0.36% |
What could go wrong
- Heavy debt, with assets pledged. Wendy's had about $2.75 billion of debt and $364 million in cash and investments as of June 28, 2026. Some subsidiaries have pledged substantially all their assets as collateral, and loan terms limit its flexibility.
- Turnaround plan may fall short. Revenue fell 3.1% and net income fell 15.1% in fiscal 2025. Project Fresh, the plan to revive U.S. traffic and franchisee profits, may not deliver, and results could keep slipping.
- Depends on franchisees it doesn't control. Franchisees ran 5,546 of 5,969 U.S. restaurants at December 28, 2025. Wendy's earns royalties and rent from them, so struggling operators, closures or poor service could hurt its income and brand.
- Concentrated beef supply and food safety. As of December 28, 2025, three independent processors supplied all fresh beef for U.S. restaurants, and one distributor served about 63% of those restaurants. A disruption or food safety scare could hurt sales and reputation.
- Dividend is not guaranteed. The annual report says there is no assurance Wendy's will keep paying dividends, or how much. Dividends per share already fell from $1.00 in fiscal 2024 to $0.67 in fiscal 2025.
- Price wars and changing eating habits. Some rivals with bigger budgets lean on discounts and value menus, while grocery and convenience stores compete for meals. Tighter household budgets, shifting tastes and weight-loss medications could also reduce visits.
Recent events
- Executive or board change
- Quarterly results released
- Executive or board change
- Executive or board change; Investor presentation or announcement
- Executive or board change
- Executive or board change; Shareholder vote results
- Executive or board change; Investor presentation or announcement
- Quarterly results released
- Investor presentation or announcement
- Quarterly results released
For income and retirement investors
Wendy's pays a dividend, but the record is uneven. Dividends per share rose from $0.29 in fiscal 2020 to $1.00 in fiscal 2023 and 2024, then fell to $0.67 in fiscal 2025, so there is no streak of annual increases. In fiscal 2025, dividends took 78.5% of earnings and 53.4% of free cash flow (cash left after running and investing in the business). The yield was 6.93% as of October 28, 2026. From fiscal 2021 to 2025, Wendy's spent $788 million buying back its own shares, more than the $745 million it paid in dividends, and its share count fell 14.4% between August 2021 and July 2026.
Shares have fallen hard in downturns. They dropped 76.7% in the 2008 financial crisis and took 75 months to recover. They fell 68.6% in the 2020 COVID crash but recovered in about four months, and fell 32.8% in the 2022 bear market. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Wendy's make money?
Through a mix of sales at its own restaurants and payments from franchisees. In fiscal 2025, revenue was $2.18 billion. Company-run restaurant sales made up 42.1%, franchise royalties 23.2%, franchisee contributions to advertising funds 19.4%, rent from franchisees 10.8% and franchise fees 4.5%. By segment, Wendy's U.S. produced 82% of revenue, Global Real Estate & Development 11% and Wendy's International 7%. Wendy's does not sell food or supplies to its franchisees.
How many Wendy's restaurants are there?
There were 7,397 Wendy's restaurants in the U.S. and 38 foreign countries and U.S. territories as of December 28, 2025, and franchisees ran most of them. In the U.S., 203 franchisees ran 5,546 of the 5,969 restaurants, and the company ran 423. Internationally, 117 franchisees ran 1,417 of 1,428, and the company ran 11 in the U.K. During 2025, Wendy's opened 268 restaurants and closed 111, generally underperforming ones.
Did Wendy's cut its dividend?
Yes. Dividends per share fell from $1.00 in fiscal 2024 to $0.67 in fiscal 2025, and total dividends paid dropped from about $204 million to about $130 million. Even at the lower level, dividends took 78.5% of fiscal 2025 earnings and 53.4% of free cash flow. The yield was 6.93% as of October 28, 2026. The annual report says there is no assurance the company will keep paying dividends, or at what level.
How much debt does Wendy's have?
About $2.75 billion of total debt as of June 28, 2026, against $364 million of cash and investments. That left net debt of about $2.38 billion, more than the company's $1.35 billion stock market value as of October 28, 2026. Shareholders' equity was only $120 million, so return on equity (profit as a share of equity) looks inflated: it was 140.6% in fiscal 2025. Under a securitized financing facility, substantially all assets of certain subsidiaries are pledged as collateral.
Is Wendy's stock cheap?
By one common measure it looks inexpensive, but earnings have been shrinking. As of October 28, 2026, its price-to-earnings ratio (share price divided by earnings per share) was 8.3, based on fiscal 2025 earnings. Net income fell 15.1% in fiscal 2025 and was down 40.8% year over year in the quarter ended June 28, 2026. The share price was down 60% over the five years to October 28, 2026. A low ratio can mean investors expect earnings to keep falling.