What is Wendy's's gross margin?

Wendy's (WEN) reported gross margin of 63.3% in Q1 2026.

How has Wendy's's gross margin changed year-over-year?

Wendy's's gross margin decreased by 2.8% year-over-year, from 65.1% to 63.3%.

What is the long-term trend for Wendy's's gross margin?

Over 5 years (2020 to 2025), Wendy's's gross margin has grown at a -0.3% compound annual growth rate (CAGR), from 64.5% to 63.6%.

What does gross margin mean?

Gross profit (revenue minus cost of revenue) as a percentage of revenue, on a trailing-twelve-month basis. Measures how much of each sales dollar survives the direct cost of producing the goods or services sold.

Wendy's WEN Gross margin

Gross margin at other companies

Yum! BrandsYUM

68.9%-2.2pp

Restaurant Brands InternationalQSR

65.3%+0.9pp

Biglari Holdings Inc.BH

59.5%-0.6pp

WingstopWING

86.2%+0.5pp

Papa John's InternationalPZZA

28.8%+0.3pp

Dutch BrosBROS

25.3%-1.1pp

Other financials

Income statement

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Revenue$540.6M+3.3%

Gross profit$339.6M+1.3%

Operating income$64.9M-21.9%

Net income$22.7M-42.1%

EPS (diluted)$0.12-36.8%

Balance sheet

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Cash & equivalents$362.0M-6.9%

Total debt$4.1B+1.0%

Total equity$115.6M-11.3%

Total assets$4.9B+0.1%

Cash flow

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Operating cash flow$59.4M-30.5%

CapEx$11.9M-32.8%

Free cash flow$47.5M-29.9%

Valuation

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Market cap$1.5B-35.1%

Enterprise value$5.25B-12.4%

P/E10.1×-2.0×

P/S0.7×-0.3×

Profitability

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Operating margin14.8%-1.9pp

Net margin6.8%-1.8pp

FCF margin10.1%-0.9pp

Returns & leverage

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Return on equity120.9%+30.5pp

Debt / equity35.6×+4.3×

Current ratio1.8×+0.3×

Where this comes from

Calculated from Wendy's’s reported figures.

gross profit/total revenue=63.3%

Based on trailing twelve months.

The official record: Wendy's’s 10-Q, filed May 8, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Wendy's's gross margin?: Wendy's (WEN) reported gross margin of 63.3% in Q1 2026.
How has Wendy's's gross margin changed year-over-year?: Wendy's's gross margin decreased by 2.8% year-over-year, from 65.1% to 63.3%.
What is the long-term trend for Wendy's's gross margin?: Over 5 years (2020 to 2025), Wendy's's gross margin has grown at a -0.3% compound annual growth rate (CAGR), from 64.5% to 63.6%.
What does gross margin mean?: Gross profit (revenue minus cost of revenue) as a percentage of revenue, on a trailing-twelve-month basis. Measures how much of each sales dollar survives the direct cost of producing the goods or services sold.