The Wendy's CoWEN -6.74%61 Net Margin % is 4.20% as of Mar. 2026, which is 52% below its 10-year median of 8.84. 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 366 Restaurants companies, The Wendy's Co ranks better than 80.05% on this metric.
Net margin is calculated as Net Income divided by its Revenue. The Wendy's Co's Net Income for the
three
months ended in Mar. 2026 was $23 Mil. The Wendy's Co's Revenue for the
three
months ended in Mar. 2026 was $541 Mil. Therefore, The Wendy's Co's net margin for the quarter that ended in Mar. 2026 was 4.20%.
The historical rank and industry rank for The Wendy's Co's Net Margin % or its related term are showing as below:
WEN'
s Net Margin % Range Over the Past 10 Years
Min: 6.77 Med: 8.84 Max: 28.94
Current: 6.77
WEN's Net Margin % is ranked better than 80.05% of 366
companies
in the Restaurants industry
Industry Median: 2.06
vs WEN: 6.77
The Wendy's Co (NAS:WEN) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
The Wendy's Co Net Margin % Related Terms
The Wendy's Co Net Margin % Historical Data
* Premium members only.
The historical data trend for The Wendy's Co's Net 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 Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Wendy's Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where The Wendy's Co's Net 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.
The Wendy's Co (WEN) has a Net Margin % of 4.20% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on The Wendy's Co and its competitors. This is 52% below median its historical median of 8.84. Over the past decade, The Wendy's Co's Net Margin % has ranged from 6.77 to 28.94. According to the industry distribution chart, The Wendy's Co ranks #73 out of 366 companies in the Restaurants industry, placing it in the top 19.9%.
Is The Wendy's Co's Net Margin % too high?
The Wendy's Co's current Net Margin % of 4.20% is 52% below median its 10-year median of 8.84. Over the past 10 years, this metric has ranged from a low of 6.77 to a high of 28.94. The Restaurants industry median Net Margin % is 2.06. The Wendy's Co's value of 4.20% is 103.9% above this industry median. Based on the distribution chart, The Wendy's Co ranks #73 out of 366 companies in the Restaurants industry, which is in the top quartile — a strong position 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 Net Margin % compare to SG and PZZA?
According to the Restaurants industry distribution chart, The Wendy's Co ranks #73 out of 366 companies for Net Margin %. This places The Wendy's Co in the top 20% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.06. The Wendy's Co's value of 4.20% is 103.9% above this benchmark. Historically, The Wendy's Co's own Net Margin % has ranged from 6.77 to 28.94 over the past decade. While the company's 10-year median is 8.84 vs. the industry median of 2.06, The Wendy's Co has consistently been above 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 Net Margin % for a Restaurants company?
The median Net Margin % among Restaurants companies is 2.06, based on 366 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Wendy's Co's current Net Margin % of 4.20% is 103.9% above 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on The Wendy's Co and its competitors. For the Restaurants industry, the median Net Margin % is 2.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Wendy's Co's current Net Margin % is 4.20%, which is 52% below median its own 10-year median of 8.84. 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 $7.32 — trading 60.2% below its estimated fair value. The current Net Margin % is 4.20%, which is 52% below median its 10-year median of 8.84 and 103.9% above the Restaurants industry median of 2.06. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For The Wendy's Co (WEN), the current Net Margin % is 4.20% 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 $7.32 is trading 60.2% below its estimated GF Value™ of $18.41.
GuruFocus considers The Wendy's Co to be Possible Value Trap.
Key valuation signals for WEN:
Net Margin %: 4.20% (52% below median its 10-year median of 8.84)
GF Value™: $18.41 vs. price of $7.32 (60.2% below fair value)
Industry Position: 103.9% above the Restaurants median (#73 of 366)
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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