Is Wendy's stock (WEN) undervalued?

On the numbers, Wendy's trades around 8.8x trailing earnings and ~10.7x EV/EBITDA, versus roughly 17–23x for peers such as McDonald's, Yum Brands and Restaurant Brands. As a ~95% franchised royalty business, that is a steep discount to comparable franchise models. Independent discounted-cash-flow estimates land near $9.91–$11.60. The market appears to be pricing the current US same-restaurant-sales trough as permanent. This is opinion, not investment advice.

What is Wendy's dividend yield, and is the dividend safe?

Wendy's pays roughly $0.56 per share annually, a yield of about 8% at recent prices. The dividend was cut 44% in 2025 and reset to a 50–60% payout target, which is why the current level is considered covered — it is supported by both 2026 EPS guidance ($0.56–0.60) and free cash flow ($190–205M). Opinion, not advice.

What is Wendy's FreshAI drive-thru?

FreshAI is Wendy's generative-AI drive-thru system, built on Google Cloud, that takes orders at the drive-thru — which represents 75–80% of Wendy's orders. Management has credited it with roughly 80 basis points of company-margin uplift and a higher average check. Wendy's stopped publishing unit-count disclosures after Q1 2025, so the scale of the benefit is best treated as optionality rather than a confirmed figure.

Why is short interest in Wendy's (WEN) so high?

Depending on the data provider, roughly 23% to 34% of Wendy's float is sold short, with borrow utilization near 92%. High short interest reflects bearish positioning around five straight quarters of negative US comparable sales and elevated leverage. Because so few shares are available to borrow, a positive catalyst can force short sellers to buy back into thin supply. Figures describe public positioning, not wrongdoing, and nothing here is a recommendation to trade.

Are Trian and Nelson Peltz trying to take Wendy's private?

Trian Partners and the Peltz family own approximately 16% of Wendy's and have anchored the position since 2005. Reporting in May 2026 indicated Trian discussed take-private financing with outside investors, including Middle East capital, against a market capitalization of roughly $1.2–1.3B. No formal offer has been made, so this is best treated as optionality rather than a base case.

What is the bear case against Wendy's stock?

The bear case centers on five straight quarters of falling US same-restaurant sales (Q1 2026 down 7.8%), net leverage near 4.8x with notes refinanced at 5.4%, 2026 adjusted EBITDA guided below 2025 ($460–480M vs $522M), pockets of franchisee financial pressure, intense value competition from McDonald's and Taco Bell, and reduced disclosure around FreshAI. Until US comps inflect, the bull case remains a thesis rather than a trend.

Skip to content

live quote loading… SHORT INTEREST ~26–30% of float BORROW UTIL elevated DIVIDEND ~$0.56 annualized · ~7% yield P/E ~10x vs ~23x peers FRESHAI Google Cloud drive-thru TRIAN/PELTZ ~16% · take-private explored

W Buy Wendy's

The Case
The Data
The Menu
Shorts
News
Ask Ben
Locations
Articles

Buy Wendy's →

Wendy's › United Kingdom

Wendy's in United Kingdom

romford1 london3 london-camden1 middlesbrough1 newcastle-upon-tyne1 nottingham1 oxford1 peterborough1 peterborough-hampton1 plymouth1 portsmouth1 reading1 liverpool1 rutland1 sheffield1 sheffield-sheffield1 solihull1 southampton1 southend-on-sea1 spalding1 watford1 wirral1 york1 glasgow1 blackpool1 brierley-hill1 brighton1 cambridge1 chesterfield1 colchester2 croydon1 derby1 dundee1 exeter-marsh-barton-trade-park1 basildon1 grays-west-thurrock1 guildford1 hull1 hull-bilton1 hull-kingswood1 huntingdon1 kingston-upon-thames1 leeds1 lincoln1 linwood1

Buy Wendy's — eat the menu, read the filings, decide for yourself.

Research

The case The data Who's short Analysis Conviction Score

More

News wire Menu ratings Location directory Buy Wendy's Ask Ben

Legal

Disclaimer Privacy Policy Terms of Use About Contact

© 2026 Buy Wendy's · Independent & unaffiliated · Opinion and commentary only — NOT investment advice · The author may hold a position in $WEN · Short-interest data reflects public third-party reporting and describes positioning, not misconduct · Not affiliated with, endorsed by, or sponsored by The Wendy's Company · Do your own research.