Wendy's owns and franchises hamburger-focused Wendys restaurants. The company was founded in 1969 and is based in Dublin, Ohio.
WEN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Wendy's Co. To summarize, we found that Wendy's Co ranked in the 85th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 732% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Wendy's Co, consider:
Its compound free cash flow growth rate, as measured over the past 4.49 years, is 0.96% -- higher than 89.92% of stocks in our DCF forecasting set.
56% of the company's capital comes from equity, which is greater than only 24.7% of stocks in our cash flow based forecasting set.
Relative to other stocks in its sector (Consumer Cyclical), Wendy's Co has a reliance on debt greater than 68.08% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Wendy's Co? See MPAA, KNDI, EVK, MIK, and MHK.
Wendy's Co said on Thursday restaurant operator Flynn Restaurant Group as well as a few other of its franchisees would buy about 393 of its outlets operated by the bankrupt NPC Quality Burgers Inc. Flynn would acquire about half of the Wendy's restaurants currently being operated by NPC, with the other franchisees that were part of the burger chain's initial consortium bid buying the rest, according to a regulatory filing https://bit.ly/2XgMZGo. Wendy's also said it does not expect to acquire and operate any restaurant as part of the deal, which is expected to be completed by the second quarter of 2021.