What is The Wendy's Co Earnings Yield (Joel Greenblatt) %?
The Wendy's Co's Enterprise Value for the quarter that ended in Dec. 2023 was $7,625 Mil.
The Wendy's Co's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $403 Mil. The Wendy's Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2023 was 5.29%.
The historical rank and industry rank for The Wendy's Co's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
WEN'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.63 Med: 4.3 Max: 11.92
Current: 5.24
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of The Wendy's Co was 11.92%. The lowest was 1.63%. And the median was 4.30%.
WEN's Earnings Yield (Joel Greenblatt) % is ranked better than 64.33% of 356
companies
in the Restaurants industry
Industry Median: 3.48
vs WEN: 5.24
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. The Wendy's Co's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 4.35%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
The Wendy's Co Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for The Wendy's Co's Earnings Yield (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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The Wendy's Co Earnings Yield (Joel Greenblatt) % Chart
Competitive Comparison of The Wendy's Co's Earnings Yield (Joel Greenblatt) %
For the Restaurants subindustry, The Wendy's Co's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Wendy's Co's Earnings Yield (Joel Greenblatt) % Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Wendy's Co's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where The Wendy's Co's Earnings Yield (Joel Greenblatt) % falls into.
The Wendy's Co Earnings Yield (Joel Greenblatt) % Calculation
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
The Wendy's Cos Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as
The Wendy's Co's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $403 Mil.
The Wendy's Co (NAS:WEN) Earnings Yield (Joel Greenblatt) % Explanation
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
The Wendy's Co Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of The Wendy's Co's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
The Wendy's Co (The Wendy's Co) Business Description
The Wendy's Company is the second-largest burger quick-service restaurant, or QSR, chain in the United States by systemwide sales, with $11.7 billion in 2022, narrowly edging Burger King ($10.3 billion) and clocking in well behind wide-moat McDonald's ($48.1 billion). After divestitures of Tim Hortons (2006) and Arby's (2011), the firm manages just the burger banner, generating sales across a footprint that spanned almost 7,100 total units in 30 countries as of year-end 2022. Wendy's generates revenue from the sale of hamburgers, chicken sandwiches, salads, and fries throughout its company-owned footprint, through franchise royalty and marketing fund payments remitted by its franchisees, which account for 94% of stores, and through franchise flipping and advisory fees.
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