The Wendy’s Co (WEN)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 403,479 | 395,992 | 388,116 | 375,611 | 365,824 | 352,915 | 332,236 | 343,711 | 349,763 | 351,285 | 352,448 | 303,975 | 270,532 | 253,429 | 253,141 | 268,294 | 287,452 | 274,938 | 722,239 | 718,969 |
| Long-term debt | US$ in thousands | 2,732,810 | 2,768,230 | 2,781,100 | 2,786,490 | 2,822,200 | 2,827,490 | 2,832,790 | 2,836,840 | 2,356,420 | 2,360,760 | 2,373,610 | 2,205,650 | 2,218,160 | 2,226,240 | 2,238,700 | 2,244,930 | 2,257,560 | 2,270,870 | 2,274,970 | 2,301,560 |
| Total stockholders’ equity | US$ in thousands | 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 | 516,359 | 649,591 | 648,048 | 640,694 |
| Return on total capital | 13.26% | 12.73% | 12.23% | 11.72% | 11.13% | 10.81% | 10.20% | 10.44% | 12.52% | 12.10% | 11.97% | 11.15% | 9.77% | 9.22% | 9.30% | 9.95% | 10.36% | 9.41% | 24.71% | 24.44% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $403,479K ÷ ($2,732,810K + $309,779K)
= 13.26%
Wendy's Co has shown a consistent improvement in its return on total capital over the past eight quarters. The trend indicates a positive development in the company's ability to generate profits from its total invested capital. As of Q4 2023, Wendy's Co achieved a return on total capital of 10.42%, which is higher compared to the previous quarters. This indicates that the company has been effectively utilizing its capital to generate returns for its shareholders. Overall, the increasing trend in return on total capital reflects positively on Wendy's Co's financial performance and efficiency in utilizing its capital resources.
Peer comparison
Dec 31, 2023