NASDAQConsumer DiscretionaryRestaurantsSnapshot 2026-08-31
Reading WEN? Create a free portfolio, then add this holding for ongoing Reports and tracking. Track it in a free portfolio. No credit card.
Create your account →Broken: Primary pillar broken — Operating profit and net income improve toward prior levels: metric not reported.
Wendy's has a new CEO and CFO with strong experience. Sales grew 3.3% in Q1 2026. The company aims for $460-$480 million adjusted EBITDA in 2026. Operational improvements could boost franchise profits.
U.S. sales and same-store sales fell over 7% in Q1 2026. Profit dropped from $83.1M to $64.9M year-over-year. Negative news and franchisee struggles hurt the brand. The turnaround may stall or fail.
The stock trades about 23% below our fair value near $10. The market expects weak growth and some risks. Our fair value is 42% above the Street median, showing some optimism.
Breaks if: Adjusted EBITDA falls below $440 million in FY26
Breaks if: Operating profit or net income remain below 80% of prior year levels over next 4 quarters
Breaks if: U.S. systemwide sales growth falls below -5% YoY or same-restaurant sales fall below -7% YoY in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story. Wendy's is working on improving its menu, marketing, and operations while also expanding internationally, particularly in China. The current thesis state is mixed due to recent performance and management changes.
The market appears to price in a low level of fragility, suggesting that current valuations are justified compared to peers. However, there is a notable expectations gap, indicating that the market may not fully anticipate the challenges ahead.
Fundamentals are expected to remain under pressure in the near term due to declines in U.S. same-restaurant sales and overall systemwide sales. Management is actively addressing these issues, but the trajectory shows persistent challenges.
The long-term thesis hinges on the success of the turnaround plan and the ability to expand internationally. Additionally, the performance of sector bellwethers like McDonald's and Starbucks will be crucial in determining the broader consumer discretionary momentum.
The outlook for Wendy's over the next 1 to 3 years is uncertain, with management focused on overcoming significant challenges. Not investment advice.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. A consumer review ranked Wendy's sandwich 9th out of 10. This suggests lower consumer satisfaction and potential weakness in demand. Wendy's stock fell 14% around August 27. This drop indicates the market may be repricing its outlook.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
