The Wendy’s Co (WEN)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 194,357 | 193,798 | 201,623 | 206,612 | 204,440 | 198,777 | 191,270 | 179,789 | 177,370 | 188,226 | 178,855 | 196,428 | 200,392 | 186,995 | 185,577 | 144,757 | 117,832 | 105,631 | 112,005 | 119,487 |
| Total stockholders’ equity | US$ in thousands | 259,352 | 259,853 | 273,753 | 293,654 | 309,779 | 342,564 | 391,115 | 419,557 | 465,720 | 437,379 | 422,863 | 454,535 | 436,405 | 542,754 | 570,356 | 520,665 | 549,596 | 521,535 | 483,983 | 451,075 |
| 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $194,357K ÷ $259,352K
= 74.94%
The return on equity (ROE) of The Wendy's Co has shown a positive trend over the past few years, indicating the company's ability to generate profits from shareholders' equity. Starting at 26.49% in March 2020, the ROE fluctuated slightly but generally remained above 20% until June 2021. From there, ROE demonstrated a significant upward trajectory, reaching 74.94% by December 2024.
This substantial increase in ROE from mid-2021 to the end of 2024 suggests that The Wendy's Co has been effectively utilizing its equity to generate higher returns for shareholders. A rising ROE indicates efficient management of assets and effective capital allocation strategies, which can lead to increased shareholder value.
Overall, the ROE trend of The Wendy's Co reflects positively on the company's financial performance and management efficiency, highlighting its ability to maximize returns on equity and generate value for shareholders.
Peer comparison
Dec 31, 2024