Cluenex
Log inStart free
All stocks · Consumer Cyclical · Restaurants

Wendy's Company (The) WEN

Wendy's Company (The) scores weak on business quality (3.9 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$6.23Oct 9, 2026
Business qualityWeak
Next earningsNov 5, 2026, before the open
Insiders, 90 daysQuiet

Why it matters

  1. What Wendy's Company (The) does

    Wendy's operates quick-service restaurants, making money primarily through franchise royalties, fees, and company-operated dining sales paid by everyday consumers. The business is shifting focus toward digital ordering expansion and unit growth to offset traffic pressures visible across the restaurant sector.

  2. What it does best

    Wendy's excels at generating high gross margins, posting 59.8% compared to CAVA's 30.0%, driven by an asset-light franchise model that collects steady royalty streams with minimal capital upkeep.

  3. The main risk

    Chain restaurant closures across the US threaten franchisee stability, risking royalty revenue streams if locations shutter amid rising labor and operating costs.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityFair

Operating margin of 13.8% and free cash flow of $264M show solid cash conversion, but high debt servicing costs weigh heavily on net income margins down at 5.7%.

MoatFair

The brand operates in the top decile of its sector for gross margin at the 88th percentile, anchored by global recognition that takes decades and billions to replicate from scratch.

GrowthSlow

Revenue growth sits at -3.1%, fading compared to historical periods as the top line contracts from $2.2B in 2024 down to $2.204B in the latest metrics.

Financial healthWeak

Total debt of $3.4B heavily outweighs cash of $301M, leaving a debt-to-equity ratio of 29.3 and an interest coverage of 2.3x where debt servicing absorbs a large chunk of earnings.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

No open market buys or unplanned sales by executives or directors.

Our sealed record on WEN

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is WEN a good business?

Wendy's Company (The) scores weak on the Cluenex quality check (3.9 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health weak.

Are insiders buying WEN?

In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.

When does WEN report earnings?

Nov 5, 2026, before the open.

For members

See WEN today

  • Today's verdict on WEN, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
Open in Cluenex Free to start. First month of Core free.

Cite this page: Cluenex, “Wendy's Company (The) (WEN)”, https://cluenex.com/stocks/wen/, data as of Oct 10, 2026.