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The Wendy's Co (The Wendy's Co) Cyclically Adjusted Price-to-FCF : 27.22 (As of Apr. 28, 2024)


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What is The Wendy's Co Cyclically Adjusted Price-to-FCF?

As of today (2024-04-28), The Wendy's Co's current share price is $20.14. The Wendy's Co's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $0.74. The Wendy's Co's Cyclically Adjusted Price-to-FCF for today is 27.22.

The historical rank and industry rank for The Wendy's Co's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

WEN' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 5.55   Med: 52.71   Max: 410.5
Current: 27.11

During the past years, The Wendy's Co's highest Cyclically Adjusted Price-to-FCF was 410.50. The lowest was 5.55. And the median was 52.71.

WEN's Cyclically Adjusted Price-to-FCF is ranked worse than
72.03% of 118 companies
in the Restaurants industry
Industry Median: 15.395 vs WEN: 27.11

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

The Wendy's Co's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $0.224. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $0.74 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


The Wendy's Co Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for The Wendy's Co's Cyclically Adjusted Price-to-FCF 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.

* Premium members only.

The Wendy's Co Cyclically Adjusted Price-to-FCF Chart

The Wendy's Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 69.63 55.36 46.20 35.74 26.22

The Wendy's Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 35.74 32.74 31.84 28.44 26.22

Competitive Comparison of The Wendy's Co's Cyclically Adjusted Price-to-FCF

For the Restaurants subindustry, The Wendy's Co's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, The Wendy's Co's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where The Wendy's Co's Cyclically Adjusted Price-to-FCF falls into.



The Wendy's Co Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

The Wendy's Co's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=20.14/0.74
=27.22

* 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.

The Wendy's Co's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, The Wendy's Co's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=0.224/129.4194*129.4194
=0.224

Current CPI (Dec. 2023) = 129.4194.

The Wendy's Co Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 -0.098 99.695 -0.127
201406 0.013 100.560 0.017
201409 0.049 100.428 0.063
201412 -0.077 99.070 -0.101
201503 -0.106 99.621 -0.138
201506 -0.102 100.684 -0.131
201509 0.026 100.392 0.034
201512 0.337 99.792 0.437
201603 0.043 100.470 0.055
201606 0.094 101.688 0.120
201609 -0.033 101.861 -0.042
201612 0.059 101.863 0.075
201703 0.107 102.862 0.135
201706 0.189 103.349 0.237
201709 0.131 104.136 0.163
201712 0.202 104.011 0.251
201803 0.234 105.290 0.288
201806 0.270 106.317 0.329
201809 0.267 106.507 0.324
201812 -0.148 105.998 -0.181
201903 0.215 107.251 0.259
201906 0.329 108.070 0.394
201909 0.288 108.329 0.344
201912 0.077 108.420 0.092
202003 -0.140 108.902 -0.166
202006 0.146 108.767 0.174
202009 0.700 109.815 0.825
202012 0.238 109.897 0.280
202103 0.333 111.754 0.386
202106 0.263 114.631 0.297
202109 0.438 115.734 0.490
202112 0.157 117.630 0.173
202203 0.039 121.301 0.042
202206 0.273 125.017 0.283
202209 0.305 125.227 0.315
202212 0.194 125.222 0.201
202303 0.189 127.348 0.192
202306 0.332 128.729 0.334
202309 0.487 129.860 0.485
202312 0.224 129.419 0.224

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


The Wendy's Co  (NAS:WEN) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


The Wendy's Co Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of The Wendy's Co's Cyclically Adjusted Price-to-FCF 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

Industry
Traded in Other Exchanges
Address
One Dave Thomas Boulevard, Dublin, OH, USA, 43017
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.
Executives
Joseph A Levato director C/O THE WENDY'S COMPANY, ONE DAVE THOMAS BLVD., DUBLIN OH 43017
Trian Fund Management, L.p. other: Schedule 13D Filer 280 PARK AVENUE, 41ST FLOOR, NEW YORK NY 10017
Kenneth W Gilbert director C/O THE WENDY'S COMPANY, ONE DAVE THOMAS BLVD., DUBLIN OH 43017
Michelle Caruso-cabrera director C/O THE WENDY'S COMPANY, ONE DAVE THOMAS BLVD., DUBLIN OH 43017
Liliana Esposito officer: Chief Communications Officer ONE DAVE THOMAS BLVD., DUBLIN OH 43017
Nelson Peltz director, 10 percent owner, officer: Chairman and CEO 223 SUNSET AVENUE, PALM BEACH FL 33480
Edward P Garden officer: Executive Vice President 223 SUNSET AVENUE, PALM BEACH FL 33480
Peter W May director, 10 percent owner, officer: President and COO 223 SUNSET AVENUE, PALM BEACH FL 33480
Matthew H. Peltz director 280 PARK AVENUE, 41ST FLOOR, NEW YORK NY 10017
Trian Partners Master Fund, L.p. other: Schedule 13D Filer 280 PARK AVENUE, 41ST FLOOR, NEW YORK NY 10017
Deepak Ajmani officer: Chief Operations Officer - U.S C/O THE WENDY'S COMPANY, ONE DAVE THOMAS BLVD., DUBLIN OH 43017
Juan Carlos Loredo officer: Global Chief Marketing Officer C/O THE WENDY'S COMPANY, ONE DAVE THOMAS BLVD., DUBLIN OH 43017
Suzanne M. Thuerk officer: Chief Accounting Officer ONE DAVE THOMAS BLVD., C/O THE WENDY'S COMPANY, DUBLIN OH 43017
Richard H. Gomez director 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
O'brien Matthew Coley officer: Chief People Officer ONE DAVE THOMAS BLVD., DUBLIN OH 43017