The Wendy's CoWEN -0.53%67 ROC (Joel Greenblatt) % is 13.98% as of Mar. 2026, which is 26% below its 10-year median of 18.78. GuruFocus rates WEN with a GF Score™ of 67/100 and a GF Value™ of $18.42 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 361 Restaurants companies, The Wendy's Co ranks better than 65.37% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. The Wendy's Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 13.98%.
The historical rank and industry rank for The Wendy's Co's ROC (Joel Greenblatt) % or its related term are showing as below:
WEN'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 13.47 Med: 18.78 Max: 55.26
Current: 17.48
During the past 13 years, The Wendy's Co's highest ROC (Joel Greenblatt) % was 55.26%. The lowest was 13.47%. And the median was 18.78%.
WEN's ROC (Joel Greenblatt) % is ranked better than 65.37% of 361
companies
in the Restaurants industry
Industry Median: 8.73
vs WEN: 17.48
The Wendy's Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 6.80% per year.
The Wendy's Co (NAS:WEN) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
The Wendy's Co ROC (Joel Greenblatt) % Related Terms
The Wendy's Co ROC (Joel Greenblatt) % Historical Data
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The historical data trend for The Wendy's Co's ROC (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.
WEN vs BH, BJRI, ARCO: ROC (Joel Greenblatt) % Comparison
For the Restaurants subindustry, The Wendy's Co's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (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 ROC (Joel Greenblatt) % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Wendy's Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where The Wendy's Co's ROC (Joel Greenblatt) % falls into.
The Wendy's Co ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 13.98% mean?
The Wendy's Co (WEN) has a ROC (Joel Greenblatt) % of 13.98% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on The Wendy's Co and its competitors. This is 26% below median its historical median of 18.78. Over the past decade, The Wendy's Co's ROC (Joel Greenblatt) % has ranged from 13.47 to 55.26. According to the industry distribution chart, The Wendy's Co ranks #125 out of 361 companies in the Restaurants industry, placing it in the top 34.6%.
Is The Wendy's Co's ROC (Joel Greenblatt) % too high?
The Wendy's Co's current ROC (Joel Greenblatt) % of 13.98% is 26% below median its 10-year median of 18.78. Over the past 10 years, this metric has ranged from a low of 13.47 to a high of 55.26. The Restaurants industry median ROC (Joel Greenblatt) % is 8.73. The Wendy's Co's value of 13.98% is 60.1% above this industry median. Based on the distribution chart, The Wendy's Co ranks #125 out of 361 companies in the Restaurants industry, which is above the industry midpoint. Overall, The Wendy's Co has a GF Score™ of 67/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does The Wendy's Co's ROC (Joel Greenblatt) % compare to BH and BJRI?
According to the Restaurants industry distribution chart, The Wendy's Co ranks #125 out of 361 companies for ROC (Joel Greenblatt) %. This puts The Wendy's Co in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 8.73. The Wendy's Co's value of 13.98% is 60.1% above this benchmark. Historically, The Wendy's Co's own ROC (Joel Greenblatt) % has ranged from 13.47 to 55.26 over the past decade. While the company's 10-year median is 18.78 vs. the industry median of 8.73, 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 ROC (Joel Greenblatt) % for a Restaurants company?
The median ROC (Joel Greenblatt) % among Restaurants companies is 8.73, based on 361 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Wendy's Co's current ROC (Joel Greenblatt) % of 13.98% is 60.1% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on The Wendy's Co and its competitors. For the Restaurants industry, the median ROC (Joel Greenblatt) % is 8.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Wendy's Co's current ROC (Joel Greenblatt) % is 13.98%, which is 26% below median its own 10-year median of 18.78. 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 $18.42, compared to a current price of $7.56 — trading 59% below its estimated fair value. The current ROC (Joel Greenblatt) % is 13.98%, which is 26% below median its 10-year median of 18.78 and 60.1% above the Restaurants industry median of 8.73. The Wendy's Co's overall GF Score™ is 67/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For The Wendy's Co (WEN), the current ROC (Joel Greenblatt) % is 13.98% 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 $7.56 is trading 59% below its estimated GF Value™ of $18.42.
GuruFocus considers The Wendy's Co to be Possible Value Trap.
Key valuation signals for WEN:
ROC (Joel Greenblatt) %: 13.98% (26% below median its 10-year median of 18.78)
GF Value™: $18.42 vs. price of $7.56 (59% below fair value)
Industry Position: 60.1% above the Restaurants median (#125 of 361)
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.
67GF Score
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