The Wendy’s Co (WEN)vsYum! Brands Inc (YUM)
WEN
The Wendy’s Co
$7.14
+0.56%
CONSUMER CYCLICAL · Cap: $1.36B
YUM
Yum! Brands Inc
$159.16
-0.17%
CONSUMER CYCLICAL · Cap: $44.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Yum! Brands Inc generates 277% more annual revenue ($8.21B vs $2.18B). YUM leads profitability with a 19.0% profit margin vs 7.6%. WEN appears more attractively valued with a PEG of 1.20. YUM earns a higher WallStSmart Score of 59/100 (C).
WEN
Buy52
out of 100
Grade: C-
YUM
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-36.3%
Fair Value
$5.78
Current Price
$7.14
$1.36 premium
Margin of Safety
+38.8%
Fair Value
$259.74
Current Price
$159.16
$100.58 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 88 in profit
Strong operational efficiency at 31.9%
Earnings expanding 27.7% YoY
Areas to Watch
Trading at 11.5x book value
Smaller company, higher risk/reward
7.6% margin — thin
Revenue declined 5.5%
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : WEN
The strongest argument for WEN centers on P/E Ratio, Return on Equity. PEG of 1.20 suggests the stock is reasonably priced for its growth.
Bull Case : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth. Profitability is solid with margins at 19.0% and operating margin at 31.9%.
Bear Case : WEN
The primary concerns for WEN are Price/Book, Market Cap, Profit Margin.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
WEN profiles as a value stock while YUM is a mature play — different risk/reward profiles.
YUM carries more volatility with a beta of 0.64 — expect wider price swings.
YUM is growing revenue faster at 6.5% — sustainability is the question.
YUM generates stronger free cash flow (482M), providing more financial flexibility.
Bottom Line
YUM scores higher overall (59/100 vs 52/100), backed by strong 19.0% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
The Wendy’s Co
CONSUMER CYCLICAL · RESTAURANTS · USA
The Wendy's Company, is a quick service restaurant business. The company is headquartered in Dublin, Ohio.
Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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