WEN (The Wendy's Co) Interest Coverage : 2.67 (As of Mar. 2025)

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What is The Wendy's Co Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. The Wendy's Co's Operating Income for the three months ended in Mar. 2025 was $84 Mil. The Wendy's Co's Interest Expense for the three months ended in Mar. 2025 was $-31 Mil. The Wendy's Co's interest coverage for the quarter that ended in Mar. 2025 was 2.67. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. The Wendy's Co interest coverage is 3.1, which is low.

The historical rank and industry rank for The Wendy's Co's Interest Coverage or its related term are showing as below:

WEN' s Interest Coverage Range Over the Past 10 Years
Min: 2.2 Med: 2.67 Max: 3.16
Current: 3.1

WEN's Interest Coverage is ranked worse than
68.42% of 266 companies
in the Restaurants industry
Industry Median: 7.02 vs WEN: 3.10

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Wendy's Co Interest Coverage Historical Data

The historical data trend for The Wendy's Co's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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The Wendy's Co Interest Coverage Chart

The Wendy's Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Interest Coverage

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2.47

3.15

2.89

3.16

3.14

The Wendy's Co Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
Interest Coverage	Get a 7-Day Free Trial															2.91	3.21	2.88	3.64	2.67

Competitive Comparison of The Wendy's Co's Interest Coverage

For the Restaurants subindustry, The Wendy's Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, The Wendy's Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where The Wendy's Co's Interest Coverage falls into.

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The Wendy's Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Wendy's Co's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, The Wendy's Co's Interest Expense was $-124 Mil. Its Operating Income was $388 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,942 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	388.381	/	-123.881
	=	3.14

The Wendy's Co's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, The Wendy's Co's Interest Expense was $-31 Mil. Its Operating Income was $84 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,924 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2025 )	/	Interest Expense (Q: Mar. 2025 )
	=	-1	*	83.945	/	-31.477
	=	2.67

The higher the ratio, the stronger the company's Financial Strength is.

The Wendy's Co (NAS:WEN) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

The Wendy's Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of The Wendy's Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

The Wendy's Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » The Wendy's Co (NAS:WEN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TQK:Germany TQK:Germany

Address

One Dave Thomas Boulevard, Dublin, OH, USA, 43017

Website

https://www.wendys.com

The Wendy's Company is the second-largest burger quick-service restaurant, or QSR, chain in the United States by systemwide sales, with $12.6 billion in 2024, narrowly edging Burger King ($11.5 billion) and clocking in well behind wide-moat McDonald's ($51.1 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 more than 7,200 total stores in 30 countries as of year-end 2024. 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 roughly 94% of stores, and through franchise flipping and advisory fees.

Executives

Kenneth W Gilbert	director	C/O THE WENDY'S COMPANY, ONE DAVE THOMAS BLVD., DUBLIN OH 43017
Mich J Mathews-spradlin	director	ONE DAVE THOMAS BLVD., DUBLIN OH 43017
Liliana Esposito	officer: Chief Communications Officer	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
Kristin A Dolan	director	C/O MSG TWO PENN PLAZA, 26TH FLOOR, NEW YORK NY 10121
Juan Carlos Loredo	officer: Global Chief Marketing Officer	C/O THE WENDY'S COMPANY, ONE DAVE THOMAS BLVD., DUBLIN OH 43017
Joseph A Levato	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
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
Suzanne M. Thuerk	officer: Chief Accounting Officer	ONE DAVE THOMAS BLVD., C/O THE WENDY'S COMPANY, DUBLIN OH 43017