Is Wendy’s Stock Outperforming Its Rivals?
Wendy’s (WEN) stock significantly underperformed its fast-food peers over the past year. How does it truly measure up against rivals like McDonald’s (MCD) and Yum! Brands (YUM)? A closer look reveals negative revenue growth and lower operating margins compared to most competitors. However, WEN’s markedly lower PE ratio suggests a deep value. Upside may be limited unless growth and margin trends improve against stronger rivals.
- WEN’s 17.3% operating margin is robust, but trails MCD’s 46.1%, signaling MCD’s superior scale and pricing power dominance.
- WEN’s -0.2% revenue growth lags peers, reflecting U.S. sales declines from price-sensitive consumers and rivals’ stronger value offerings.
- WEN’s 42.1% stock decline and 8.4 PE reflect deep market skepticism due to eroding brand relevance and inability to match rival value offerings.
Here’s how Wendy’s stacks up across size, valuation, and profitability versus key peers.
| WEN | MCD | QSR | YUM | CMG | DPZ | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 1.6 | 233.8 | 22.6 | 45.3 | 50.9 | 13.0 |
| Revenue ($ Bil) | 2.2 | 26.3 | 9.3 | 8.1 | 11.9 | 4.8 |
| PE Ratio | 8.4 | 27.8 | 24.5 | 31.3 | 33.2 | 22.0 |
| LTM Revenue Growth | -0.2% | 1.2% | 16.8% | 11.6% | 5.4% | 3.9% |
| LTM Operating Margin | 17.3% | 46.1% | 25.9% | 30.8% | 16.9% | 19.1% |
| LTM FCF Margin | 10.8% | 28.1% | 15.1% | 19.4% | 12.1% | 13.0% |
| 12M Market Return | -42.1% | 10.1% | 10.5% | 12.9% | -28.9% | -18.5% |
For more details on Wendy’s, read Buy or Sell WEN Stock. Below we compare WEN’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
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| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| WEN | -0.2% | – | 3.0% | 4.1% | 10.5% |
| MCD | 1.2% | – | 1.7% | 10.0% | -0.2% |
| QSR | 16.8% | – | 19.7% | 7.9% | 13.3% |
| YUM | 11.6% | – | 6.7% | 3.4% | 3.9% |
| CMG | 5.4% | 5.4% | 14.6% | 14.3% | |
| DPZ | 3.9% | – | 5.1% | -1.3% | 4.1% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| WEN | 17.3% | – | 17.3% | 18.0% | 16.9% |
| MCD | 46.1% | – | 45.7% | 46.1% | 44.6% |
| QSR | 25.9% | – | 27.6% | 30.4% | 31.1% |
| YUM | 30.8% | – | 31.8% | 32.5% | 31.7% |
| CMG | 16.9% | 16.9% | 17.5% | 16.5% | |
| DPZ | 19.1% | – | 18.7% | 18.3% | 16.5% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| WEN | 8.4 | – | 8.8 | 16.7 | 23.5 |
| MCD | 27.8 | – | 26.7 | 24.9 | 35.4 |
| QSR | 24.5 | – | 21.3 | 17.1 | 23.8 |
| YUM | 31.3 | – | 28.7 | 23.6 | 28.2 |
| CMG | 33.2 | 32.2 | 53.8 | 51.3 | |
| DPZ | 22.0 | – | 24.8 | 28.4 | 32.6 |
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