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Company Overview Wendy s is primarily engaged in the business of operating, developing and franchising a system of distinctive quick-service restaurants serving high quality food. Today, Wendy s is the second largest quick-service restaurant company in the hamburger sandwich segment in the United States (the U.S. ) based on traffic and dollar share, and the third largest globally with 7,397 res…
15.79% operating margin is respectable but not wide. ROIC at 6.53%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue declined 3.1% YoY. The question is whether this is cyclical or a structural shift.
Net debt of $3.84B represents 15.8x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$2.19B
▼ -3.1% YoY
Net Income (TTM)
$149M
▼ -15.1% YoY
Op. Margin
14.83%
▼ -0.8pp YoY
ROIC
6.32%
▼ -0.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$222M
▼ -7.0% YoY
Op. Cash Flow (TTM)
$319M
▼ -3.0% YoY
Net Debt
$3.82B
Cash & Equiv.
$299M
5Y CAGR: +4.6%
5Y CAGR: +2.4%
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