The Wendy's Company (WEN) vs Wingstop Inc. (WING)

The Wendy's Company and Wingstop Inc. are both Restaurants companies. Wingstop Inc. is the larger, with a market value of $2.7B against $1.2B — 2.2× the size. The Wendy's Company trades at the lower P/E: 9.9× against 23.4×. Wingstop Inc. grew revenue faster over the last twelve months: 7.61% against −0.98%. Wingstop Inc. has the higher net margin (16.2% vs 5.72%) and the higher return on invested capital (44.2% vs 5.98%). Both pay a dividend; The Wendy's Company yields more (5.24% vs 0.28%). Across the 22 metrics below, Wingstop Inc. leads on 13 and The Wendy's Company on 9.

Valuation

Metric WEN WING Restaurants median
P/E 9.92 23.42 22.14
P/S 0.57 3.74 0.91
P/B 10.35 n/m 2.01
Price to free cash flow 5.39 21.00 19.41
EV/EBITDA 8.93 16.29 11.48
EV/Sales 1.93 5.22 1.20
Earnings yield 10.08% 4.27% 2.30%
Free cash flow yield 18.54% 4.76% 3.92%

Profitability

Metric WEN WING Restaurants median
Gross margin 58.83% 86.32% 38.77%
Operating margin 13.63% 27.87% 4.30%
Net margin 5.72% 16.15% 1.85%
Free cash flow margin 10.50% 17.83% 3.12%
Return on equity 108.04% (15.96%) 3.07%
Return on assets 2.58% 17.04% 1.50%
Return on invested capital 5.98% 44.17% 3.14%

Growth

Metric WEN WING Restaurants median
Revenue growth (TTM) (0.98%) 7.61% 5.16%
EPS growth (last fiscal year) (10.53%) 67.84% —
Revenue growth, 5-year CAGR 4.66% 22.87% 10.57%
Net income growth, 5-year CAGR 6.98% 49.54% 0.00%

Health

Metric WEN WING Restaurants median
Debt to equity 28.20 (1.57) 0.10
Current ratio 1.90 2.97 0.81
Net debt to EBITDA 5.96 4.75 0.43

Dividend

Metric WEN WING Restaurants median
Dividend yield 5.24% 0.28% 2.32%
Payout ratio 0.84 0.36 0.00

Size

Metric WEN WING Restaurants median
Market cap 1.24b 2.67b 482.66m

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