Investment homework
ymo1
wendyscompany.xlsxIncome Stmt
| Wendy's Company (WEN) all figures in millions of USD except per share items | ||||||
| 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |
| Sales | 2,198.3 | 2,102.9 | 1,608.5 | 1,438.8 | 920.8 | 622.8 |
| Franchise revenues | 306.9 | 320.8 | 390.0 | 431.5 | 514.7 | 600.6 |
| Franchise royalty revenue and fees | -- | -- | 322.1 | 344.5 | 371.5 | 410.5 |
| Franchise rental income | -- | -- | 68.0 | 87.0 | 143.1 | 190.1 |
| Total revenues | 2,505.2 | 2,423.7 | 1,998.5 | 1,870.3 | 1,435.4 | 1,223.4 |
| Cost of sales | -1,881.2 | -1,780.9 | -1,355.1 | -1,184.1 | -744.7 | -512.9 |
| Other operating income / expense, net | -4.3 | -5.0 | -26.2 | -37.2 | -53.0 | -95.7 |
| Franchise rental expense | -- | -- | -37.8 | -47.8 | -67.8 | -88.0 |
| Other operating income (expense), net | -- | -- | 11.6 | 10.5 | 14.8 | -7.7 |
| General and administrative | -287.8 | -291.5 | -260.7 | -256.6 | -245.9 | -208.6 |
| Depreciation and amortization | -147.0 | -175.4 | -153.9 | -145.1 | -122.7 | -125.7 |
| Impairment of long-lived assets | -21.1 | -36.4 | -19.6 | -25.0 | -16.2 | -4.1 |
| System optimization gains / losses, net | -- | 51.3 | 91.5 | 74.0 | 71.9 | -39.1 |
| Reorganization and realignment costs | -41.0 | -37.0 | -31.9 | -21.9 | -10.1 | -22.6 |
| Impairment of goodwill | -- | -9.4 | -- | -- | -- | -- |
| Operating profit / loss | 122.7 | 139.3 | 242.6 | 274.5 | 314.8 | 214.8 |
| Interest expense | -98.6 | -68.6 | -52.0 | -86.1 | -114.8 | -118.1 |
| Loss / gain on early extinguishment of debt | -75.1 | -28.6 | 0.0 | -7.3 | 0.0 | 0.0 |
| Investment income, net | 36.2 | 23.6 | 1.2 | 52.2 | 0.7 | 2.7 |
| Other income / expense, net | 1.6 | -2.1 | 0.7 | 0.8 | 1.0 | 1.6 |
| Income / loss from continuing operations before income taxes | -13.1 | 63.6 | 192.5 | 234.1 | 201.7 | 101.0 |
| Provision for / benefit from income taxes | 21.1 | -16.1 | -76.1 | -94.1 | -72.1 | 93.0 |
| Income / loss from continuing operations | 8.0 | 47.5 | 116.4 | 140.0 | 129.6 | 194.0 |
| Income / loss from discontinued operations, net of income taxes | 2.0 | -2.9 | 5.0 | 10.5 | 0.0 | 0.0 |
| Gain / loss on disposal of discontinued operations, net of income taxes | -0.4 | 0.0 | 0.0 | 10.7 | 0.0 | 0.0 |
| Net income / loss | 9.5 | 44.6 | 121.4 | 161.1 | 129.6 | 194.0 |
| Net loss / income attributable to noncontrolling interests | -2.4 | 0.9 | -- | -- | -- | -- |
| Net income / loss attributable to The Wendy’s Company | 7.1 | 45.5 | 121.4 | 161.1 | 129.6 | 194.0 |
| Common stock | ||||||
| Basic | ||||||
| Continuing operations | $0.02 | $0.12 | $0.31 | $0.43 | $0.49 | $0.79 |
| Discontinued operations | $0.00 | -$0.01 | $0.01 | $0.07 | $0.00 | $0.00 |
| Net Income | $0.02 | $0.11 | $0.32 | $0.50 | $0.49 | $0.79 |
| Diluted | ||||||
| Continuing operations | $0.02 | $0.12 | $0.31 | $0.43 | $0.49 | $0.77 |
| Discontinued operations | $0.00 | -$0.01 | $0.01 | $0.06 | $0.00 | $0.00 |
| Net Income | $0.02 | $0.11 | $0.32 | $0.49 | $0.49 | $0.77 |
Balance Sheet
| Balance Sheet WEN - As reported in millions of USD | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 |
| Cash and cash equivalents | 453.4 | 580.2 | 267.1 | 327.2 | 198.2 | 171.4 |
| Prepaid expenses and other current assets | 24.2 | 81.8 | 72.3 | -- | -- | -- |
| Restricted cash | -- | -- | -- | 42.9 | 57.6 | 32.6 |
| Prepaid expenses and other current assets excluding restricted cash | -- | -- | -- | 69.9 | 19.2 | 20.1 |
| Accounts and notes receivable | 61.2 | 62.9 | 68.2 | 104.9 | 98.8 | 114.4 |
| Inventories | 13.8 | 10.2 | 6.9 | 4.3 | 2.9 | 3.2 |
| Deferred income tax benefit | 91.5 | 120.2 | 73.7 | -- | -- | -- |
| Advertising funds restricted assets | 65.8 | 67.2 | 65.3 | 67.4 | 75.8 | 62.6 |
| Current assets of discontinued operations | -- | -- | 8.7 | -- | -- | -- |
| Total current assets | 709.8 | 922.4 | 562.1 | 616.6 | 452.5 | 404.4 |
| Properties | 1,250.3 | 1,165.5 | 1,241.2 | 1,227.9 | 1,192.3 | 1,263.1 |
| Goodwill | 876.2 | 842.5 | 822.6 | 770.8 | 741.4 | 743.3 |
| Other intangible assets | 1,301.5 | 1,305.8 | 1,351.3 | 1,339.6 | 1,322.5 | 1,321.6 |
| Investments | 113.3 | 83.2 | 74.1 | 58.4 | 57.0 | 56.0 |
| Net investment in direct financing leases | -- | -- | -- | -- | 123.6 | 229.1 |
| Other assets | 52.0 | 43.6 | 56.3 | 95.5 | 49.9 | 79.5 |
| Noncurrent assets of discontinued operations | -- | -- | 30.1 | -- | -- | -- |
| Total assets | 4,303.2 | 4,363.0 | 4,137.6 | 4,108.7 | 3,939.3 | 4,096.9 |
| Current portion of long-term debt | 12.9 | 38.5 | 53.8 | 23.3 | 24.7 | 30.2 |
| Accounts payable | 70.8 | 83.7 | 77.3 | 53.7 | 27.6 | 22.8 |
| Accrued expenses and other current liabilities | 137.3 | 160.1 | 125.3 | 124.4 | 102.0 | 111.6 |
| Current liabilities of discontinued operations | -- | -- | 18.5 | -- | -- | -- |
| Advertising funds restricted liabilities | 65.8 | 67.2 | 65.3 | 67.4 | 75.8 | 62.6 |
| Total current liabilities | 286.9 | 349.5 | 340.2 | 268.8 | 230.1 | 227.2 |
| Long-term debt | 1,416.5 | 1,390.0 | 1,325.0 | 2,294.2 | 2,277.8 | 2,263.7 |
| Capital lease obligations, net of current portion | 28.2 | 35.3 | 60.0 | 108.6 | 209.8 | 460.5 |
| Deferred income taxes | 438.2 | 482.5 | 493.8 | 459.7 | 446.5 | 299.1 |
| Other liabilities | 147.6 | 176.2 | 199.8 | 224.5 | 247.4 | 273.3 |
| Noncurrent liabilities of discontinued operations | -- | -- | 1.2 | -- | -- | -- |
| Common stock | 47.0 | 47.0 | 47.0 | 47.0 | 47.0 | 47.0 |
| Additional paid-in capital | 2,782.8 | 2,794.4 | 2,827.0 | 2,874.8 | 2,878.6 | 2,886.0 |
| Accumulated deficit / retained earnings | -467.0 | -492.2 | -445.9 | -356.6 | -290.9 | -163.3 |
| Common stock held in treasury, at cost | -382.9 | -409.4 | -679.2 | -1,741.4 | -2,043.8 | -2,150.3 |
| Accumulated other comprehensive loss / income | 6.0 | -10.3 | -31.3 | -70.8 | -63.2 | -46.2 |
| Total stockholders' equity | 1,985.9 | 1,929.5 | 1,717.6 | 752.9 | 527.7 | 573.2 |
| Total Liabilities & Stockholders' equity | 4,303.2 | 4,363.0 | 4,137.6 | 4,108.7 | 3,939.3 | 4,096.9 |
| Check Balance Sheet | balance | balance | balance | balance | balance | balance |
CF Stmt
| Cash Flow Statement WEN - As reported in millions of USD | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 |
| Net income / loss | 9.47 | 44.63 | 121.43 | 161.14 | 129.62 | 194.03 |
| Depreciation and amortization | 154.17 | 200.22 | 159.86 | 153.73 | 124.30 | 125.69 |
| Share-based compensation | 11.47 | 19.61 | 28.24 | 23.23 | 18.14 | 20.93 |
| Impairment of long-lived assets | 21.10 | 45.78 | 19.61 | 25.00 | 16.24 | 4.10 |
| Deferred income tax benefit / provision | -31.60 | 12.85 | 69.54 | 89.03 | -14.21 | -119.33 |
| Excess tax benefits from share-based compensation | 0.00 | 0.00 | -9.36 | -- | -- | -- |
| Non-cash rent expense / income, net | 7.21 | 8.15 | 1.95 | 3.36 | -7.54 | -11.82 |
| Net recognition / receipt of deferred vendor incentives | -0.92 | 6.32 | 4.06 | -2.56 | 0.96 | 1.90 |
| System optimization gains, net | 0.44 | -49.71 | -91.58 | -74.04 | -71.93 | 39.08 |
| Gain on disposal of bakery | -- | -- | 0.00 | -25.53 | 0.00 | 0.00 |
| Gain / loss on sales of investments, net | -27.77 | 0.80 | -0.98 | -0.34 | -0.50 | -2.57 |
| Distributions received from TimWen joint venture | 15.27 | 14.12 | 13.90 | 12.45 | 11.43 | 11.71 |
| Equity in earnings in joint ventures, net | -8.72 | -9.72 | -10.18 | -9.21 | -8.35 | -7.57 |
| Other, net | 3.09 | -8.91 | -11.69 | -4.32 | 4.17 | 1.71 |
| Long-term debt-related activities, net | -- | 36.99 | 3.63 | 8.08 | 11.77 | 12.08 |
| Accretion of long-term debt | 7.97 | -- | -- | -- | -- | -- |
| Amortization of deferred financing costs | 4.24 | -- | -- | -- | -- | -- |
| Loss on early extinguishment of debt | 75.08 | -- | -- | -- | -- | -- |
| Changes in operating assets and liabilities | ||||||
| Restricted cash | -- | 0.00 | 0.00 | -23.64 | 0.23 | 0.16 |
| Accounts and notes receivable | 4.00 | 0.17 | -2.76 | -40.40 | -34.21 | -17.34 |
| Inventories | -0.56 | 1.48 | 0.71 | -0.06 | 0.03 | -0.31 |
| Prepaid expenses and other current assets | -1.36 | -4.63 | -2.98 | -5.41 | -3.28 | -3.49 |
| Accounts payable | -9.27 | -0.38 | -3.11 | -7.79 | -6.64 | -2.29 |
| Accrued expenses and other current liabilities | -42.91 | 12.07 | -35.53 | -8.42 | 18.70 | 4.98 |
| Net cash provided by / used in operating activities | 190.41 | 329.85 | 254.78 | 274.31 | 188.93 | 251.64 |
| Capital expenditures | -197.59 | -224.24 | -298.47 | -251.62 | -150.02 | -81.71 |
| Acquisitions | -40.61 | -4.61 | -53.95 | -1.23 | -2.21 | -86.79 |
| Dispositions | 21.02 | 149.11 | 161.39 | 204.39 | 262.17 | 81.52 |
| Other, net | -0.16 | -0.04 | 0.43 | 3.29 | -3.58 | -9.00 |
| Proceeds from sale of the bakery | -- | 0.00 | 0.00 | 78.41 | 0.00 | 0.00 |
| Changes in restricted cash | 0.00 | -18.59 | 1.75 | 3.63 | -14.97 | 24.93 |
| Proceeds from sales of investments | 27.95 | 21.69 | 2.19 | 0.62 | 0.89 | 4.11 |
| Payments to acquire investments | -- | -- | -1.15 | -2.11 | -0.17 | -0.38 |
| Net cash provided by / used in investing activities | -189.38 | -76.69 | -187.81 | 35.38 | 92.11 | -67.31 |
| Proceeds from long-term debt | 1,113.75 | 575.00 | 0.00 | 2,294.00 | 0.00 | 0.00 |
| Repayments of long-term debt | -1,044.31 | -590.29 | -38.38 | -1,327.22 | -24.62 | -28.27 |
| Change in restricted cash | -- | 0.00 | 0.00 | -5.69 | 0.00 | 0.00 |
| Premium payment on redemption / purchases of notes | -43.15 | -8.44 | -- | -- | -- | -- |
| Proceeds from termination of interest rate swaps | -- | 5.71 | -- | -- | -- | -- |
| Deferred financing costs | -15.57 | -7.68 | 0.00 | -43.82 | -1.98 | -1.42 |
| Distribution to noncontrolling interests | -3.67 | |||||
| Proceeds from stock option exercises | 7.81 | 42.37 | 40.15 | 27.95 | 19.77 | 12.88 |
| Other, net excluding proceeds from stock option exercises | 0.05 | 0.44 | -- | -- | -- | |
| Repurchases of common stock | 0.00 | -69.32 | -301.22 | -1,098.72 | -336.96 | -126.23 |
| Dividends | -39.04 | -70.68 | -75.12 | -71.85 | -63.83 | -68.32 |
| Payments related to tax withholding for share-based compensation | -- | -- | -- | -12.22 | -4.44 | -5.72 |
| Net cash used in / provided by financing activities | -24.13 | -122.90 | -374.56 | -237.56 | -412.06 | -217.08 |
| Net cash used in/ provided by total operations | -23.10 | 130.26 | -307.60 | 72.14 | -131.02 | -32.76 |
| Effect of exchange rate changes on cash | 1.23 | -3.47 | -5.28 | -12.20 | 2.04 | 5.96 |
| Net increase / decrease in cash and cash equivalents | -21.87 | 126.79 | -312.88 | 59.94 | -128.98 | -26.79 |
| Cash and cash equivalents at beginning of period | 475.23 | 453.36 | 580.15 | 267.28 | 327.22 | 198.24 |
| Cash and cash equivalents at end of period | 453.36 | 580.15 | 267.28 | 327.22 | 198.24 | 171.45 |
Ratios
| Wendy's (WEN) | Tax rate | WACC | 6.50% | Any relevant competitor/industry ratios can be downloaded here - state who you are using as the competitors | |||||
| Fiscal Year & TTM | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||
| Sales | |||||||||
| EBIT | |||||||||
| NOPLAT | |||||||||
| Net Income | |||||||||
| Cash | |||||||||
| Total Equity | |||||||||
| Total Debt | |||||||||
| Total Assets | |||||||||
| Invested Capital | |||||||||
| Fiscal Year & TTM | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||
| Noncash expenses | |||||||||
| Capital Expenditure | |||||||||
| Acquisition | |||||||||
| Change in NWC | |||||||||
| Net Investment | |||||||||
| Net Investment w/acquisition | |||||||||
| FCF w/o acquisition | |||||||||
| FCF per share | |||||||||
| FCF w/acquisition | |||||||||
| FCF per share w/acquisition | |||||||||
| Fiscal Year End | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | YTD | ||
| Stock Price (Data) | |||||||||
| Dividend per share (data) | |||||||||
| Shares (data) | |||||||||
| Market capitalization | |||||||||
| Enterprise Value | |||||||||
| P/E (TTM) ratio | |||||||||
| EV/ EBITDA | |||||||||
| Fiscal Year | 2013 | 2014 | 2015 | 2016 | 2017 | Average | |||
| ROIC w/goodwill GAAP | |||||||||
| ROIC w/o goodwill GAAP | |||||||||
| ROIC non-GAAP | |||||||||
| ROE | |||||||||
| ROA | |||||||||
| Gross Margin | |||||||||
| Operating Margin GAAP | |||||||||
| Operating Margin non-GAAP | |||||||||
| Net Margin | |||||||||
| Current Ratio | |||||||||
| Quick Ratio | |||||||||
| Debt/Equity | |||||||||
| Interest Coverage | |||||||||
| Debt/ EBITDA | |||||||||
| Economic Profit Spread ($) | |||||||||
| Economic Profit Charge ($) | |||||||||
| As a % of Sales | 2013 | 2014 | 2015 | 2016 | 2017 | Average | |||
| CapEx | |||||||||
| Acquisition | |||||||||
| % Change | 2013-12 | 2014-13 | 2015-14 | 2016-15 | 2017-16 | Average | CAGR | ||
| Revenue | |||||||||
| Same Store Sales (data) | |||||||||
| Operating Income GAAP | |||||||||
| Operating Income non-GAAP | |||||||||
| Net Income | |||||||||
| FCF per share | |||||||||
| FCF per share w/ acquisition | |||||||||
| Capex | |||||||||
| Economic Profit | |||||||||
| Fiscal Year % Change | 2013 | 2014 | 2015 | 2016 | 2017 | YTD | Average | CAGR | |
| Stock Price | |||||||||
| Total Return Calculated | |||||||||
| S&P 500 Price (data) | |||||||||
| Industry (data) | |||||||||
| Moody's | S&P | Fitch | |||||||
| Current Credit Rating (Data) | |||||||||
| * Averages and CAGR should reflect fiscal year averages only - in your written analysis include YTD | |||||||||
| ** Everything must be calculated or carried over from financial statements UNLESS specifically noted in class | |||||||||
