DCF Tool

WEN

Wendy`s Co – Full-Service Restaurants
Wendy'sĀ® was founded in 1969 by Dave Thomas in Columbus, Ohio. Dave built his business on the premise, "Quality is Our RecipeĀ®," which remains the guidepost of the Wendy's system. Wendy's is primarily engaged in the business of operating, developing and franchising a system of distinctive quick-service restaurants serving high quality food. The Wendy's Company is committed to doing the right thing and making a positive difference in the lives of others. Today, Wendy's and its franchisees operate more than 6,800 restaurants worldwide with a vision of becoming the world's most thriving and beloved restaurant brand.
Analysis Results
Intrinsic Value $46.73
Latest Price $23.28
Relative Value 50% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 8.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 324 306
2023 352 314
2024 383 322
2025 416 330
2026 452 339
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 11800 million. This corresponds to a present value of 8340 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1610 million. Adding in the terminal value gives a total present value of 9950 million.

There are presently 213.0 million outstanding shares, so the intrinsic value per share is 46.73.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 592,849,000
Current Cash 249,438,000
Current Liabilities 426,925,000
Current Debt 39,763,000
Non-Cash Working Capital (NCWC) -43,751,000
Change in NCWC -52,144,000
EBIT 344,214,000
Tax Provision 40,186,000
Depreciation and Amortization 125,540,000
Capital Expenditure -77,984,000
Unlevered Free Cash Flow 282,128,706
Current Assets 687,623,000
Current Cash 306,989,000
Current Liabilities 413,308,000
Current Debt 41,067,000
Non-Cash Working Capital (NCWC) 8,393,000
Change in NCWC 70,484,000
EBIT 290,227,000
Tax Provision 34,963,000
Depreciation and Amortization 132,775,000
Capital Expenditure -68,969,000
Unlevered Free Cash Flow 358,106,406
Current Assets 554,047,000
Current Cash 300,195,000
Current Liabilities 349,698,000
Current Debt 33,755,000
Non-Cash Working Capital (NCWC) -62,091,000
Change in NCWC -43,874,000
EBIT 285,260,000
Tax Provision 34,541,000
Depreciation and Amortization 131,693,000
Capital Expenditure -74,453,000
Unlevered Free Cash Flow 241,166,773
Current Assets 665,718,000
Current Cash 431,405,000
Current Liabilities 284,185,000
Current Debt 31,655,000
Non-Cash Working Capital (NCWC) -18,217,000
Change in NCWC -54,133,000
EBIT 263,194,000
Tax Provision 114,801,000
Depreciation and Amortization 128,879,000
Capital Expenditure -69,857,000
Unlevered Free Cash Flow 215,527,610
Current Assets 404,353,000
Current Cash 171,447,000
Current Liabilities 227,162,000
Current Debt 30,172,000
Non-Cash Working Capital (NCWC) 35,916,000
Change in NCWC -12,947,000
EBIT 280,505,000
Tax Provision -93,010,000
Depreciation and Amortization 125,687,000
Capital Expenditure -81,710,000
Unlevered Free Cash Flow 311,535,000
Current Assets 452,532,000
Current Cash 198,240,000
Current Liabilities 230,081,000
Current Debt 24,652,000
Non-Cash Working Capital (NCWC) 48,863,000
Change in NCWC 4,994,000
EBIT 269,173,000
Tax Provision 72,066,000
Depreciation and Amortization 124,304,000
Capital Expenditure -150,023,000
Unlevered Free Cash Flow 152,269,600
Current Assets 616,569,000
Current Cash 327,216,000
Current Liabilities 268,774,000
Current Debt 23,290,000
Non-Cash Working Capital (NCWC) 43,869,000
Change in NCWC 35,490,000
EBIT 247,372,000
Tax Provision 94,149,000
Depreciation and Amortization 153,732,000
Capital Expenditure -251,622,000
Unlevered Free Cash Flow 85,497,240
Current Assets 562,102,000
Current Cash 267,276,000
Current Liabilities 340,224,000
Current Debt 53,777,000
Non-Cash Working Capital (NCWC) 8,379,000
Change in NCWC -22,897,000
EBIT 233,393,000
Tax Provision 79,835,000
Depreciation and Amortization 159,860,000
Capital Expenditure -298,471,000
Unlevered Free Cash Flow -20,692,248
Current Assets 922,411,000
Current Cash 580,152,000
Current Liabilities 349,526,000
Current Debt 38,543,000
Non-Cash Working Capital (NCWC) 31,276,000
Change in NCWC 48,761,000
EBIT 171,274,000
Tax Provision 14,154,000
Depreciation and Amortization 200,219,000
Capital Expenditure -224,245,000
Unlevered Free Cash Flow 154,956,839
Current Assets 709,827,000
Current Cash 453,361,000
Current Liabilities 286,862,000
Current Debt 12,911,000
Non-Cash Working Capital (NCWC) -17,485,000
Change in NCWC 72,481,000
EBIT 184,875,000
Tax Provision -21,083,000
Depreciation and Amortization 154,174,000
Capital Expenditure -197,590,000
Unlevered Free Cash Flow 213,940,000

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