Biglari Holdings Inc. (BH) vs The Wendy's Company (WEN)

Biglari Holdings Inc. and The Wendy's Company are both Restaurants companies. The Wendy's Company is the larger, with a market value of $1.2B against $1.1B — 1.1× the size. Biglari Holdings Inc. has negative trailing earnings, so its P/E is not meaningful; The Wendy's Company trades at 9.9×. Biglari Holdings Inc. grew revenue faster over the last twelve months: 7.54% against −0.98%. The Wendy's Company has the higher net margin (5.72% vs −7.33%) and the higher return on invested capital (5.98% vs 0.87%). Across the 21 metrics below, Biglari Holdings Inc. leads on 11 and The Wendy's Company on 10.

Valuation

Metric BH WEN Restaurants median
P/E n/m 9.92 22.14
P/S 0.21 0.57 0.91
P/B 0.16 10.35 2.01
Price to free cash flow 1.34 5.39 19.41
EV/EBITDA 1.35 8.93 11.48
EV/Sales 0.24 1.93 1.20
Earnings yield (31.68%) 10.08% 2.30%
Free cash flow yield 74.64% 18.54% 3.92%

Profitability

Metric BH WEN Restaurants median
Gross margin 39.13% 58.83% 38.77%
Operating margin 7.52% 13.63% 4.30%
Net margin (7.33%) 5.72% 1.85%
Free cash flow margin 16.01% 10.50% 3.12%
Return on equity (5.25%) 108.04% 3.07%
Return on assets (3.10%) 2.58% 1.50%
Return on invested capital 0.87% 5.98% 3.14%

Growth

Metric BH WEN Restaurants median
Revenue growth (TTM) 7.54% (0.98%) 5.16%
EPS growth (last fiscal year) (969.59%) (10.53%) —
Revenue growth, 5-year CAGR (1.84%) 4.66% 10.57%
Net income growth, 5-year CAGR 0.00% 6.98% 0.00%

Health

Metric BH WEN Restaurants median
Debt to equity 0.58 28.20 0.10
Current ratio 2.45 1.90 0.81
Net debt to EBITDA (0.36) 5.96 0.43

Dividend

Metric BH WEN Restaurants median
Dividend yield — 5.24% 2.32%
Payout ratio 0.00 0.84 0.00

Size

Metric BH WEN Restaurants median
Market cap 1.11b 1.24b 482.66m

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