International Growth Too Small
Started in 1969 in Ohio, Wendy’s is a fast-food company best known for its fresh, never-frozen beef and square hamburgers, operating mainly through a franchised network with some company-owned stores. About 80% of its 2.2B revenue is U.S.-based, while the international segment is still small but growing.
Looking at performance, revenue growth has slowed from roughly 10% annually in 2021–22 to about 2% last year. In fact, that modest growth came almost entirely from international stores, while U.S. sales have declined in 2025.
The stock reflects this weakness, having fallen more than 60% from its all-time high in 2020. We are currently trading at about $8, whicj is a 12-year-low. That decline has pushed the dividend yield up to around 7% per year, despite a one-third cut last year to bring the payout ratio back in line at 60–70% of earnings.
To sum it up, Wendy’s is a struggling fast-food chain with no clear signs of recovery. Ten-year stock performance is down roughly 15%, disappointing for long-term investors. Growth is coming solely from the international business, which remains small relative to the U.S. market.
Is this stock worth investing in now? In my view, no. I’d want to see clear momentum in both revenues and stock price before taking a position. The dividend alone isn’t enough to justify a buy.
What are your thoughts about $WEN, guys? Have you tried that squared hamburger yet?
PS: Next earnings will be released this Friday, so we’ll see if that brings some more constructive results.
