Wendy’s Company Stock Fair Value Calculator – WENDY’S Reports Strong Earnings for Q2 FY2023
August 21, 2023
☀️Earnings Overview
For the second quarter of FY2023, WENDY’S COMPANY ($NASDAQ:WEN) saw a 4.4% rise in total revenue to USD 561.6 million and a 23.8% increase in net income to USD 59.6 million compared to the same period of the previous year.
Market Price
On Wednesday, WENDY’S COMPANY reported strong earnings for the second quarter of FY2023. The company’s stock opened at $22.1 but closed at $21.3, down by 2.0% from its last closing price of $21.7. Despite the slight dip in the stock price, the company’s overall performance was impressive as the company reported strong earnings for the period. The strong earnings were attributed to WENDY’S COMPANY’s well-executed strategic initiatives, which have allowed the company to continue to maintain market share.
Additionally, the company improved its cost structure and has continued to focus on providing superior customer satisfaction. These efforts have resulted in increased revenue and growth in profitability for WENDY’S COMPANY. These strong results are a testament to the hard work and dedication of WENDY’S COMPANY’s management team and employees. With the strong results of this quarter, it is clear that the company is well-positioned for continued success in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Wendy’s Company. More…
| Total Revenues | Net Income | Net Margin |
| 2.16k | 191.27 | 9.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Wendy’s Company. More…
| Operations | Investing | Financing |
| 303.21 | -77.93 | -320.31 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Wendy’s Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.35k | 4.96k | 1.86 |
Key Ratios Snapshot
Some of the financial key ratios for Wendy’s Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.9% | 16.2% | 18.0% |
| FCF Margin | ROE | ROA |
| 10.1% | 59.8% | 4.5% |
Analysis – Wendy’s Company Stock Fair Value Calculator
At GoodWhale, we have conducted an extensive financial analysis of WENDY’S COMPANY. After careful consideration of its fundamentals, our proprietary Valuation Line has revealed that the fair value of a share of WENDY’S COMPANY is around $25.0. However, its current market price stands at $21.3, which is a fair price that is undervalued by 14.8%. We believe this is an ideal opportunity for investors to capitalize on a good deal. More…
Peers
In the quick-service restaurant industry, the Wendy’s Co. competes with McDonald’s Corp, Chipotle Mexican Grill Inc, and Yum Brands Inc. All of these companies are trying to attract customers with fresh, high-quality food at a reasonable price. Wendy’s Co. has an advantage over its competitors because it is a smaller company and can be more nimble in its response to customer trends.
– McDonald’s Corp ($NYSE:MCD)
McDonald’s Corp has a market cap of 187.28B as of 2022, a Return on Equity of -90.17%. McDonald’s Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand. The first McDonald’s franchise using the arches logo opened in Phoenix, Arizona in 1953. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.
– Chipotle Mexican Grill Inc ($NYSE:CMG)
Founded in 1993, Chipotle Mexican Grill is a chain of restaurants that primarily serves Mexican-style cuisine, including tacos and burritos. As of December 31, 2020, there were 2,724 Chipotle restaurants in the United States, Canada, the United Kingdom, France, and Germany. The company has a market cap of $43.03B as of 2022 and a return on equity of 27.52%.
– Yum Brands Inc ($NYSE:YUM)
Yum Brands Inc is a publicly traded American fast food company with more than 40,000 locations in over 140 countries. The company operates the brands KFC, Pizza Hut, and Taco Bell. Yum Brands is headquartered in Louisville, Kentucky.
Yum Brands Inc has a market cap of 31.59B as of 2022. The company has a Return on Equity of -15.87%. Yum Brands Inc is a publicly traded American fast food company with more than 40,000 locations in over 140 countries. The company operates the brands KFC, Pizza Hut, and Taco Bell. Yum Brands is headquartered in Louisville, Kentucky.
Summary
Wendy’s Company reported positive financial results for the second quarter ending June 30 2023 with a 4.4% increase in total revenue to USD 561.6 million and a 23.8% increase in net income to USD 59.6 million. Investors may consider this performance as encouraging, as it demonstrates the company’s ability to capitalize on market opportunities and drive long-term growth through its existing strategies. Further, Wendy’s Company has been strategically investing in new product launches, technology advancements, and marketing initiatives, which could lead to further improvements in financial results in the coming quarters.
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