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Wendys Co
NASDAQ:WEN

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Wendys Co
NASDAQ:WEN
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Price: 6.96 USD 2.96% Market Closed
Market Cap: $1.3B

EV/GP

3.2
Current
28%
Cheaper
vs 3-y average of 4.5

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
3.2
=
Enterprise Value
$4.4B
/
Gross Profit
$1.4B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
3.2
=
Enterprise Value
$4.4B
/
Gross Profit
$1.4B

Valuation Scenarios

Wendys Co is trading below its 3-year average

If EV/GP returns to its 3-Year Average (4.5), the stock would be worth $9.64 (39% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+103%
Average Upside
72%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 3.2 $6.96
0%
3-Year Average 4.5 $9.64
+39%
5-Year Average 4.8 $10.45
+50%
Industry Average 6.3 $13.71
+97%
Country Average 6.5 $14.1
+103%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close

Market Distribution

Lower than 79% of companies in the United States of America
Percentile
21th
Based on 9 428 companies
21th percentile
3.2
Low
0 — 4.2
Typical Range
4.2 — 10.6
High
10.6 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 4.2
Median 6.5
70th Percentile 10.6
Max 1 764 211.7

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 63%
Intrinsic Value
Price $6.96
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