First Watch Restaurant Group, Inc. (FWRG) vs The Wendy's Company (WEN)

First Watch Restaurant Group, Inc. and The Wendy's Company are both Restaurants companies. The Wendy's Company is the larger, with a market value of $1.4B against $786.2M — 1.7× the size. The Wendy's Company trades at the lower P/E: 11.0× against 42.9×. First Watch Restaurant Group, Inc. grew revenue faster over the last twelve months: 19.3% against −0.98%. The Wendy's Company has the higher net margin (5.72% vs 1.35%) and the higher return on invested capital (5.98% vs 1.95%). Across the 21 metrics below, The Wendy's Company leads on 13 and First Watch Restaurant Group, Inc. on 8.

Valuation

Metric FWRG WEN Restaurants median
P/E 42.90 10.98 25.42
P/S 0.60 0.63 1.13
P/B 1.25 11.46 2.10
Price to free cash flow n/m 5.97 16.75
EV/EBITDA 9.48 9.21 12.55
EV/Sales 0.81 2.00 1.33
Earnings yield 2.33% 9.10% 2.06%
Free cash flow yield (2.75%) 16.75% 3.44%

Profitability

Metric FWRG WEN Restaurants median
Gross margin 20.63% 58.83% 39.04%
Operating margin 2.14% 13.63% 4.43%
Net margin 1.35% 5.72% 1.75%
Free cash flow margin (1.66%) 10.50% 2.13%
Return on equity 2.88% 108.04% 3.07%
Return on assets 1.02% 2.58% 1.41%
Return on invested capital 1.95% 5.98% 2.91%

Growth

Metric FWRG WEN Restaurants median
Revenue growth (TTM) 19.27% (0.98%) 5.52%
EPS growth (last fiscal year) 3.33% (10.53%) (4.30%)
Revenue growth, 5-year CAGR 28.99% 4.66% 10.57%
Net income growth, 5-year CAGR 0.00% 6.98% 0.00%

Health

Metric FWRG WEN Restaurants median
Debt to equity 0.46 28.20 0.20
Current ratio 0.27 1.90 0.81
Net debt to EBITDA 2.53 5.96 0.43

Dividend

Metric FWRG WEN Restaurants median
Dividend yield — 6.76% 1.88%
Payout ratio — 0.74 0.45

Size

Metric FWRG WEN Restaurants median
Market cap 786.22m 1.37b 581.93m

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