Does Wendy's Co have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores Wendy's Co (WEN) 54.4 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 93, returns on capital 35, balance-sheet safety 2, capital discipline 78.

Is WEN stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $14.20 per share versus a recent price of $7.76 — 45% below value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has WEN's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 54.4 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

Wendy's Co

WEN · Consumer Discretionary · $1.5B mkt cap · FY2025 filings · Shallow moat ·

On the watchlist

Shallow moat

The four filters

Pricing power93

Median gross margin 64.1% over 10y, stable.

Returns on capital35

Median ROIC 9.0%, above the 9% hurdle in 50% of years.

Balance-sheet safety2

Net debt/EBITDA 5.0x, interest coverage 3x.

Capital discipline78

Owner earnings +5.8%/yr, share count shrinking (buybacks).

Margin of safety

Above valueOn sale

45% below value

Owner earnings (normalized): $243.2M
Est. intrinsic value / share: $14.20
Recent price: $7.76
Discount to value: 45% below value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

19 years of fundamentals

The business, in plain English

Wendy's Co booked $2.2B of revenue in FY2025 in the Consumer Discretionary sector and kept 63.6% of it as gross profit — a high-margin business by that measure. After every other cost, 7.6% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $1.8B (FY2008) to $2.2B (FY2025) — about 1.0% a year compounded over 17 years.

It earned 9.7% on invested capital in FY2025, with a median of 7.0% across 18 filed years. The Returns on Capital filter above scores it 35/100.

The balance sheet carried $2.8B of total debt in FY2025 against $215.4M of owner earnings — roughly 12.8 years of owner earnings to retire it all. Balance-Sheet Safety scores it 2/100.

The share count fell 30.1% between FY2015 and FY2025 — management has been retiring shares, which concentrates each remaining owner's claim. Capital Discipline scores it 78/100.

Put together: Pricing Power is the strongest of the four filters (93/100) and Balance-Sheet Safety the weakest (2/100), which is how WEN lands at 54/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$2.2B FY2025

Gross marginRevenue kept after cost of goods63.6% FY2025

Return on invested capitalOperating profit on the capital employed9.7% FY2025

Owner earningsCash an owner could take out$215.4M FY2025

Gaps in a line mean that item isn’t in WEN’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale54.4 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — WEN has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Consumer Discretionary context

#135 of 340 scored Consumer Discretionary companies, ranked by Moat Score.

Nearest peers by Moat Score

#133HEI HEICO Corporation54.7 out of 100, Shallow moatShallow moat
#134MHH MASTECH DIGITAL, INC.54.6 out of 100, Shallow moatShallow moat
#136SPWH SPORTSMAN’S WAREHOUSE HOLDINGS, INC.54.4 out of 100, Shallow moatShallow moat
#137TTSH TILE SHOP HOLDINGS, INC.54.3 out of 100, Shallow moatShallow moat

Compare WEN with its nearest peers →All Consumer Discretionary companies on the Index →

Common questions about WEN

Does Wendy's Co have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores Wendy's Co (WEN) 54.4 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 93, returns on capital 35, balance-sheet safety 2, capital discipline 78.
Is WEN stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $14.20 per share versus a recent price of $7.76 — 45% below value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has WEN's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 54.4 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell WEN. See the disclaimer.