WEN vs. MCD

Last updated Jun 4, 2026

WEN (The Wendy's Company) and MCD (McDonald's Corporation) are both stocks. Both operate in the Restaurants industry within the Consumer Cyclical sector. Over the past 10 years, WEN returned -0.57%/yr vs 11.10%/yr for MCD. At a 0.27 correlation, their price movements are largely independent.

Performance

WEN vs. MCD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in The Wendy's Company (WEN) and McDonald's Corporation (MCD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, WEN achieves a -14.68% return, which is significantly lower than MCD's -9.47% return. Over the past 10 years, WEN has underperformed MCD with an annualized return of -0.57%, while MCD has yielded a comparatively higher 11.10% annualized return.

WEN

• 1D: -4.99%
• 1M: 6.68%
• YTD: -14.68%
• 6M: -16.98%
• 1Y: -36.76%
• 3Y*: -28.88%
• 5Y*: -17.62%
• 10Y*: -0.57%

MCD

• 1D: -1.11%
• 1M: -3.15%
• YTD: -9.47%
• 6M: -10.08%
• 1Y: -10.39%
• 3Y*: 0.39%
• 5Y*: 5.61%
• 10Y*: 11.10%

*Multi-year figures are annualized to reflect compound growth (CAGR)

WEN vs. MCD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
WEN The Wendy's Company	-14.68%	-45.81%	-11.45%	-9.65%	-2.77%	10.98%	0.07%	45.34%	-3.02%	23.78%
MCD McDonald's Corporation	-9.47%	7.89%	0.14%	15.06%	0.51%	27.79%	11.30%	13.97%	5.78%	45.05%

Correlation

The correlation between WEN and MCD is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.18
Correlation (3Y) Calculated over the trailing 3-year period	0.25
Correlation (5Y) Calculated over the trailing 5-year period	0.34
Correlation (10Y) Calculated over the trailing 10-year period	0.36
Correlation (All Time) Calculated using the full available price history since Mar 18, 1992	0.27

The correlation between WEN and MCD shifts across timeframes, from 0.18 (1 year) to 0.36 (10 years), reflecting how their relationship changes across market environments.

Fundamentals

EPS WEN : $1.19 MCD : $12.13
PE Ratio WEN : 5.75 MCD : 22.53
PS Ratio WEN : 0.52 MCD : 7.12
Total Revenue (TTM) WEN : $1.88B MCD : $27.45B
Gross Profit (TTM) WEN : $467.83M MCD : $12.10B
EBITDA (TTM) WEN : $438.11M MCD : $14.46B

Return for Risk

WEN vs. MCD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

WEN

WEN Risk / Return Rank: 10
WEN Sharpe Ratio Rank: 8
WEN Sortino Ratio Rank: 8
WEN Omega Ratio Rank: 11
WEN Calmar Ratio Rank: 9
WEN Martin Ratio Rank: 12

MCD

MCD Risk / Return Rank: 14
MCD Sharpe Ratio Rank: 14
MCD Sortino Ratio Rank: 14
MCD Omega Ratio Rank: 15
MCD Calmar Ratio Rank: 21
MCD Martin Ratio Rank: 6

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

WEN vs. MCD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for The Wendy's Company (WEN) and McDonald's Corporation (MCD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	WEN	MCD	Difference
Sharpe ratio Return per unit of total volatility	-0.81	-0.64	-0.18
Sortino ratio Return per unit of downside risk	-1.22	-0.81	-0.41
Omega ratio Gain probability vs. loss probability	0.87	0.91	-0.04
Calmar ratio Return relative to maximum drawdown	-0.83	-0.55	-0.28
Martin ratio Return relative to average drawdown	-1.25	-1.45	+0.20
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

WEN vs. MCD - Sharpe Ratio Comparison

The current WEN Sharpe Ratio is -0.81, which is comparable to the MCD Sharpe Ratio of -0.64. The chart below compares the historical Sharpe Ratios of WEN and MCD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	WEN	MCD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.81	-0.64	-0.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.53	0.33	-0.85
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.02	0.55	-0.56
Sharpe Ratio (All Time) Calculated using the full available price history	0.15	0.53	-0.38

Drawdowns

WEN vs. MCD - Drawdown Comparison

The maximum WEN drawdown since its inception was -84.54%, which is greater than MCD's maximum drawdown of -73.20%. Use the drawdown chart below to compare losses from any high point for WEN and MCD.

Drawdown Indicators

	WEN	MCD	Difference
Max Drawdown Largest peak-to-trough decline	-84.54%	-73.20%	-11.34%
Max Drawdown (1Y) Largest decline over 1 year	-44.55%	-19.04%	-25.51%
Max Drawdown (3Y) Largest decline over 3 years	-65.88%	-19.04%	-46.84%
Max Drawdown (5Y) Largest decline over 5 years	-71.84%	-19.04%	-52.80%
Max Drawdown (10Y) Largest decline over 10 years	-71.84%	-36.90%	-34.94%
Current Drawdown Current decline from peak	-69.96%	-18.88%	-51.08%
Average Drawdown Average peak-to-trough decline	-34.32%	-14.89%	-19.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	29.50%	7.23%	+22.27%

Volatility

WEN vs. MCD - Volatility Comparison

The Wendy's Company (WEN) has a higher volatility of 24.39% compared to McDonald's Corporation (MCD) at 4.79%. This indicates that WEN's price experiences larger fluctuations and is considered to be riskier than MCD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	WEN	MCD	Difference
Volatility (1M) Calculated over the trailing 1-month period	24.39%	4.79%	+19.60%
Volatility (6M) Calculated over the trailing 6-month period	36.94%	12.06%	+24.88%
Volatility (1Y) Calculated over the trailing 1-year period	45.31%	16.41%	+28.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.64%	17.24%	+16.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	37.34%	20.39%	+16.95%

Dividends

WEN vs. MCD - Dividend Comparison

WEN's dividend yield for the trailing twelve months is around 8.18%, more than MCD's 2.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MCD McDonald's Corporation	2.69%	2.35%	2.34%	2.10%	2.15%	1.96%	2.35%	2.39%	2.36%	2.23%	2.97%	2.91%
WEN The Wendy's Company	8.18%	8.04%	6.13%	5.13%	2.21%	1.80%	1.32%	1.89%	2.18%	1.71%	1.81%	2.09%

Financials

WEN vs. MCD - Profitability Comparison

The chart below illustrates the profitability comparison between The Wendy's Company and McDonald's Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

WEN - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, The Wendy's Company reported a gross profit of 24.45M and revenue of 225.50M. Therefore, the gross margin over that period was 10.8%.

MCD - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, McDonald's Corporation reported a gross profit of 0.00 and revenue of 6.52B. Therefore, the gross margin over that period was 0.0%.

WEN - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, The Wendy's Company reported an operating income of -5.08M and revenue of 225.50M, resulting in an operating margin of -2.3%.

MCD - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, McDonald's Corporation reported an operating income of 2.95B and revenue of 6.52B, resulting in an operating margin of 45.3%.

WEN - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, The Wendy's Company reported a net income of 45.62M and revenue of 225.50M, resulting in a net margin of 20.2%.

MCD - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, McDonald's Corporation reported a net income of 1.98B and revenue of 6.52B, resulting in a net margin of 30.4%.

Frequently Asked Questions

Can I hold both WEN and MCD in my portfolio?

WEN and MCD have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, WEN or MCD?

WEN has higher volatility (24.39%) compared to MCD (4.79%). In terms of maximum drawdown, WEN dropped -84.54% vs MCD's -73.20%.

Which has better risk-adjusted returns?

MCD currently has the higher Sharpe Ratio (-0.64 vs -0.81), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.