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Wendys Co
NASDAQ:WEN

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Wendys Co
NASDAQ:WEN
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Price: 7.11 USD -0.28% Market Closed
Market Cap: $1.4B

EV/EBIT

12.8
Current
22%
Cheaper
vs 3-y average of 16.3

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
12.8
=
Enterprise Value
$4.4B
/
EBIT
$347.5m

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
12.8
=
Enterprise Value
$4.4B
/
EBIT
$347.5m

Valuation Scenarios

Wendys Co is trading below its 3-year average

If EV/EBIT returns to its 3-Year Average (16.3), the stock would be worth $9.07 (28% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+54%
Average Upside
40%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 12.8 $7.11
0%
3-Year Average 16.3 $9.07
+28%
5-Year Average 17.7 $9.87
+39%
Industry Average 18.1 $10.06
+41%
Country Average 19.6 $10.92
+54%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
$4.4B
/
Dec 2025
$347.5m
=
12.8
Current
$4.4B
/
Dec 2025
$355.7m
=
12.5
Forward
$4.4B
/
Dec 2026
$292.2m
=
15.2
Forward
$4.4B
/
Dec 2027
$306.2m
=
14.5
Forward
$4.4B
/
Dec 2028
$321.4m
=
13.8
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
US
Wendys Co
NASDAQ:WEN
1.4B USD 12.8 8.2
US
McDonald's Corp
NYSE:MCD
214.9B USD 20.5 25.1
US
Starbucks Corp
NASDAQ:SBUX
111.4B USD 34.7 81.4
UK
Compass Group PLC
LSE:CPG
46.4B GBP 16.7 0.3
US
Chipotle Mexican Grill Inc
NYSE:CMG
47B USD 23.4 30.6
US
Yum! Brands Inc
NYSE:YUM
44.4B USD 20.8 28.5
CA
Restaurant Brands International Inc
NYSE:QSR
27.3B USD 15.9 46.2
IN
Eternal Ltd
NSE:ETERNAL
2.3T INR -368.2 1 019.1
US
Darden Restaurants Inc
NYSE:DRI
22.6B USD 17.9 20.4
CN
Yum China Holdings Inc
NYSE:YUMC
17.2B USD 12 18.5
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
US
Wendys Co
NASDAQ:WEN
Average EV/EBIT: 19.4
12.8
-3%
N/A
US
McDonald's Corp
NYSE:MCD
20.5
8%
2.6
US
Starbucks Corp
NASDAQ:SBUX
34.7
17%
2
UK
Compass Group PLC
LSE:CPG
16.7
13%
1.3
US
Chipotle Mexican Grill Inc
NYSE:CMG
23.4
11%
2.1
US
Yum! Brands Inc
NYSE:YUM
20.8
9%
2.3
CA
Restaurant Brands International Inc
NYSE:QSR
15.9
8%
2
IN
Eternal Ltd
NSE:ETERNAL
Negative Multiple: -368.2 N/A N/A
US
Darden Restaurants Inc
NYSE:DRI
17.9
9%
2
CN
Yum China Holdings Inc
NYSE:YUMC
12
9%
1.3

Market Distribution

Lower than 74% of companies in the United States of America
Percentile
26th
Based on 8 638 companies
26th percentile
12.8
Low
0 — 13.6
Typical Range
13.6 — 27.8
High
27.8 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 13.6
Median 19.6
70th Percentile 27.8
Max 1 826 183.2

Wendys Co
Glance View

The Wendy's Company, a venerated player in the global quick-service restaurant industry, has built its iconic brand on a foundation of quality and customer service since its inception in 1969 by Dave Thomas in Columbus, Ohio. With its signature square hamburgers, fresh ingredients, and the playful promise of "old-fashioned hamburgers," Wendy's has distinguished itself through a relentless focus on quality and innovation. The company's ethos is reflected in its continued commitment to offering fresh, never frozen beef and a menu that evolves with changing consumer tastes, incorporating healthier options such as salads and plant-based alternatives. Wendy's fosters a unique dining experience, blending traditional fast-food convenience with a menu that challenges the norms of typical fast-food offerings. Beyond its flavorful offerings, Wendy's monetizes this experience mainly through its expansive network of company-owned and franchised restaurant locations. The franchise model is the cornerstone of Wendy's growth strategy, providing a scalable framework that allows it to expand its presence across international markets. By leveraging franchising, the company stabilizes its revenue through royalties and franchisee fees while strategically managing operational costs. Wendy's also embraces digital transformation, using technology to enhance customer interaction through online and mobile ordering platforms, which serve to increase sales volume and customer loyalty. By balancing innovation with tradition in both its culinary offerings and business model, Wendy's continues to position itself as a formidable competitor in the fast-food landscape.

WEN Intrinsic Value
18.93 USD
Undervaluation 62%
Intrinsic Value
Price $7.11
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