The Wendy's Company, together with its subsidiaries, engages in the operation, development, and franchising of a system of quick-service restaurants in the United States and internationally.
FAIL · Does not pass the screen
7.03 USD
At the last full screen 2026-09-16
Screened 2026-09-16 · the tape above runs as of 19:03 UTC · two dates, stated on purpose · verdict and workings shown in full · never trimmed
The Label · The Season, Not the Day
This name holds its distribution label.
The Wendy's Company holds its Distribution at $7.03. Elevated stress, defensive posture warranted, held for 11 days.
As held on the ledger · 2026-09-16
Phase
Distribution · caution
Quantitative state
Elevated stress, defensive posture warranted, held for 11 days
Price at the screen
$7.03
Valuation
10.65 trailing · 13.47 forward price to earnings
Values screen
FAIL· score 70.0
Beta
0.40
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
83.63%
Below 33%
Interest-bearing debt is 83.6% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
0.00%
Below 33%
Cash held in interest-bearing accounts and securities is 0.0% of assets, under the one-third limit.
Pass
Receivables
8.19%
Below 49%
Money owed to the company is 8.2% of assets, under the 49% limit.
Pass
Revenue purity
0.00%
Below 5%
Only 0.0% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Conscience Overlay
Conscience flag · AFSC Investigate
The quantitative screen above is arithmetic. Separately, community boycott lists cite this company: Documented on AFSC Investigate. The desk records that flag here without folding it into the verdict: the screen measures the balance sheet, the overlay informs the conscience, and they are different judgements that belong to different owners. The second one is yours.
Fair value range in USD, drawn from the 2026-09-16 screen. The gold marker is the market price at the same screen. The price runs 9.0% above the base estimate.
Third-party analyst targets: 19 covering, consensus Hold. The average target sits +14% from the screen price.
Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish: a quality-at-a-fair-price name rather than a deep-value one.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-16 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Wendy's burger chain priced beyond its fair value
Walk into any Wendy's and the smell of fresh burgers hits you fast, yet the economics behind the brand tell a flatter story. The shares sit at $7.76 against our fair value of $7.29, offering no margin of safety and an explicit none rating. Forward earnings sit at 12.2 times while revenue edges ahead only 3 percent a year, leaving little room for the market to rerate the stock higher.
High reported ROE of 121 percent looks impressive on paper, yet the business remains a classic consumer cyclical exposed to wage pressure, commodity swings and shifting diner habits. Nineteen analysts cluster around a hold with a median target of just $8, underscoring limited upside once the cycle turns. The ethical screen clears, but that alone does not turn a thin growth profile into an opportunity.
Low multiples on peak earnings often signal a value trap rather than a bargain, and currency or real-estate exposure adds further volatility. The setup leaves little margin for disappointment once consumer spending softens. Analysis, not advice.
The risks · The things to watch: it's a small-cap, so the share price can swing harder than the market; it carries a real debt load, which raises the stakes if revenue slips.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
WEN trades on Nasdaq. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 18.8% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 38%. Our forward projection puts the odds of a 10% gain over the next month near 12%. The street (20 analysts) rates it hold, with a mean price target of $8.
2026-08-16Markup$8.66+27.5%Entry 4
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 27.5% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 38%. Our forward projection puts the odds of a 10% gain over the next month near 12%. The street (20 analysts) rates it hold, with a mean price target of $8.
2026-07-18Markup$6.79+0.0%Entry 3
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 38%. Our forward projection puts the odds of a 10% gain over the next month near 12%. The street (20 analysts) rates it hold, with a mean price target of $8.
2026-07-03Markup$6.79+0.0%Entry 2
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows negative risk-adjusted returns.
2026-07-02Markup$6.79Entry 1
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows negative risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
