The Wendy’s Co (WEN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 35.27% | 27.84% | 29.80% | 30.17% | 31.75% | 33.44% | 31.60% | 31.22% | 29.21% | 29.44% | 31.64% | 34.35% | 36.42% | 36.78% | 36.70% | 36.07% | 33.91% | 32.59% | 32.47% | 33.00% |
| Operating profit margin | 16.50% | 16.18% | 16.61% | 17.16% | 17.36% | 17.42% | 17.41% | 16.99% | 16.86% | 17.04% | 16.66% | 18.63% | 19.34% | 19.42% | 19.67% | 16.98% | 15.53% | 13.49% | 13.46% | 14.37% |
| Pretax margin | 12.13% | 12.17% | 12.63% | 12.87% | 12.81% | 12.41% | 12.11% | 11.61% | 11.62% | 11.63% | 11.25% | 12.31% | 12.68% | 12.50% | 12.52% | 10.40% | 8.81% | 8.16% | 8.29% | 8.96% |
| Net profit margin | 8.65% | 8.76% | 9.18% | 9.45% | 9.37% | 9.13% | 8.86% | 8.42% | 8.46% | 9.26% | 9.08% | 10.20% | 10.56% | 9.85% | 9.87% | 8.09% | 6.80% | 6.26% | 6.70% | 7.01% |
The Gross Profit Margin of The Wendy's Co has shown some variability over the periods analyzed, ranging from a low of 29.21% in December 2022 to a high of 36.78% in September 2021. This ratio indicates the company's ability to generate profit from its core business activities after accounting for the cost of goods sold.
The Operating Profit Margin has also fluctuated, with the lowest point at 16.18% in September 2024 and the peak at 19.67% in June 2021. This ratio reflects the efficiency of the company in managing its operating expenses relative to its total revenue.
The Pretax Margin, which indicates the proportion of income before taxes earned from sales, has ranged from 8.16% in September 2020 to 12.87% in March 2024. The fluctuations in this margin suggest changes in the company's ability to generate profits before tax expenses.
The Net Profit Margin, representing the final profitability after deducting all expenses, has varied from 6.26% in September 2020 to 10.56% in December 2021. This ratio reflects the company's overall profitability trend and its ability to translate revenue into net income for shareholders.
Overall, the profitability ratios of The Wendy's Co have shown some degree of volatility, indicating fluctuations in the company's ability to manage costs, generate revenue, and translate it into profits over the periods analyzed.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.36% | 7.06% | 7.17% | 7.23% | 6.74% | 7.17% | 7.02% | 6.71% | 6.42% | 6.27% | 5.95% | 6.45% | 7.19% | 7.15% | 7.16% | 6.13% | 5.34% | 4.58% | 4.44% | 4.92% |
| Return on assets (ROA) | 3.86% | 3.82% | 3.96% | 3.98% | 3.64% | 3.76% | 3.57% | 3.32% | 3.23% | 3.41% | 3.24% | 3.53% | 3.93% | 3.63% | 3.59% | 2.92% | 2.34% | 2.13% | 2.21% | 2.40% |
| Return on total capital | 152.80% | 150.96% | 146.22% | 137.74% | 130.25% | 115.60% | 99.23% | 87.34% | 73.70% | 71.57% | 66.46% | 61.93% | 67.40% | 58.87% | 58.40% | 58.60% | 51.70% | 48.18% | 50.03% | 58.25% |
| Return on equity (ROE) | 74.94% | 74.58% | 73.65% | 70.36% | 66.00% | 58.03% | 48.90% | 42.85% | 38.09% | 43.03% | 42.30% | 43.22% | 45.92% | 34.45% | 32.54% | 27.80% | 21.44% | 20.25% | 23.14% | 26.49% |
The profitability ratios of The Wendy's Co show a consistent improvement over the years, indicating strong performance in generating profits relative to its assets and capital.
1. Operating return on assets (Operating ROA) increased steadily from 4.92% in March 2020 to 7.36% in December 2024. This ratio measures the company's ability to generate operating profits from its assets, and the consistent upward trend suggests effective asset utilization and operational efficiency.
2. Return on assets (ROA) also saw a positive trend, rising from 2.40% in March 2020 to 3.86% in December 2024. ROA reflects the overall profitability of the company relative to its total assets, and the increase indicates improved profitability over time.
3. Return on total capital exhibited significant growth, climbing from 58.25% in March 2020 to 152.80% in December 2024. This ratio assesses the returns generated from both debt and equity capital invested in the business, demonstrating the company's ability to generate high returns on invested capital.
4. Return on equity (ROE) showed a consistent uptrend, increasing from 26.49% in March 2020 to 74.94% in December 2024. ROE measures the profitability of a company from the perspective of its shareholders, and the rising trend signifies enhanced profitability for equity holders over the years.
Overall, the profitability ratios of The Wendy's Co reflect a positive trajectory, indicating sustained growth in profitability, efficient management of assets, and a strong ability to generate returns for both investors and stakeholders.