The Wendy's CoWEN +6.56%61 Gross Margin % is 25.60% as of Mar. 2026, which is 27% below its 10-year median of 34.92. GuruFocus rates WEN with a GF Score™ of 61/100 and a GF Value™ of $18.41 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 359 Restaurants companies, The Wendy's Co ranks worse than 77.72% on this metric.
The Wendy's Co gross margin has been in long-term decline. The average rate of decline per year is -4.5%.
The historical rank and industry rank for The Wendy's Co's Gross Margin % or its related term are showing as below:
WEN'
s Gross Margin % Range Over the Past 10 Years
Min: 26.74 Med: 34.92 Max: 49.14
Current: 26.74
During the past 13 years, the highestGross Margin % of The Wendy's Co was 49.14%. The lowest was 26.74%. And the median was 34.92%.
WEN's Gross Margin % is ranked worse than 77.72% of 359
companies
in the Restaurants industry
Industry Median: 45.71
vs WEN: 26.74
The Wendy's Co had a gross margin of 25.60% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for The Wendy's Co was -4.50% per year.
The Wendy's Co (NAS:WEN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
The Wendy's Co had a gross margin of 25.60% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
The Wendy's Co Gross Margin % Related Terms
The Wendy's Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for The Wendy's Co's Gross Margin % 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.
For the Restaurants subindustry, The Wendy's Co's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Wendy's Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Wendy's Co's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
The Wendy's Co (WEN) has a Gross Margin % of 25.60% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on The Wendy's Co and its competitors. This is 27% below median its historical median of 34.92. Over the past decade, The Wendy's Co's Gross Margin % has ranged from 26.74 to 49.14. According to the industry distribution chart, The Wendy's Co ranks #279 out of 359 companies in the Restaurants industry, placing it in the top 77.7%.
Is The Wendy's Co's Gross Margin % too high?
The Wendy's Co's current Gross Margin % of 25.60% is 27% below median its 10-year median of 34.92. Over the past 10 years, this metric has ranged from a low of 26.74 to a high of 49.14. The Restaurants industry median Gross Margin % is 45.71. The Wendy's Co's value of 25.60% is 44% below this industry median. Based on the distribution chart, The Wendy's Co ranks #279 out of 359 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, The Wendy's Co has a GF Score™ of 61/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does The Wendy's Co's Gross Margin % compare to SG and PZZA?
According to the Restaurants industry distribution chart, The Wendy's Co ranks #279 out of 359 companies for Gross Margin %. This places The Wendy's Co in the lower half of its industry. The industry median Gross Margin % is 45.71. The Wendy's Co's value of 25.60% is 44% below this benchmark. Historically, The Wendy's Co's own Gross Margin % has ranged from 26.74 to 49.14 over the past decade. While the company's 10-year median is 34.92 vs. the industry median of 45.71, The Wendy's Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.71, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Wendy's Co's current Gross Margin % of 25.60% is 44% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on The Wendy's Co and its competitors. For the Restaurants industry, the median Gross Margin % is 45.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Wendy's Co's current Gross Margin % is 25.60%, which is 27% below median its own 10-year median of 34.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Wendy's Co stock overvalued right now?
Based on GuruFocus' analysis, The Wendy's Co (WEN) is currently considered Possible Value Trap. The stock's GF Value™ is $18.41, compared to a current price of $7.81 — trading 57.6% below its estimated fair value. The current Gross Margin % is 25.60%, which is 27% below median its 10-year median of 34.92 and 44% below the Restaurants industry median of 45.71. The Wendy's Co's overall GF Score™ is 61/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For The Wendy's Co (WEN), the current Gross Margin % is 25.60% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Wendy's Co (WEN) Overvalued in 2026?
Based on GuruFocus' analysis, The Wendy's Co stock appears to be undervalued.
The current stock price of $7.81 is trading 57.6% below its estimated GF Value™ of $18.41.
GuruFocus considers The Wendy's Co to be Possible Value Trap.
Key valuation signals for WEN:
Gross Margin %: 25.60% (27% below median its 10-year median of 34.92)
GF Value™: $18.41 vs. price of $7.81 (57.6% below fair value)
Industry Position: 44% below the Restaurants median (#279 of 359)
No single metric tells the full story. See the WEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Wendy's Co is engaged in operating, developing, and franchising a system of distinctive quick-service restaurants serving high-quality food. The company operates through Wendy's U.S., Wendy's International, and Global Real Estate & Development. Wendy's U.S. and Wendy's International include the operation and franchising of restaurants and derive revenues from sales at company-operated restaurants, as well as royalties, franchise fees, and advertising fund collections from franchised restaurants. Global Real Estate & Development includes real estate activities for owned and leased sites that are leased or subleased to franchisees and includes the company's share of income from its Canadian restaurant real estate joint venture.
61GF Score
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