Takeaways from New CEO Meet and Greet

Research evidence excerpt

Takeaways from New CEO Meet and Greet

TD Cowen The Wendy's Company

Global Research June 9, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Restaurants:

Our valuation methodology is primarily based on Price-to-Earnings (P/E), followed by Enterprise

Value to EBITDA (EV/EBITDA) and Free Cash Flow Yield (FCF Yield). We may also incorporate

DCF analysis for nascent businesses that we believe are trading on fundamentals and

anticipated EBITDA/profits figures several years in the future. In cases where GAAP EBITDA or

EPS include one-time or non-core items, we may uses non-GAAP, adjusted estimates.

We make investment recommendations on certain early stage, pre-revenue companies based

upon an assessment of their business model, technology, probability of market success,

and the potential market opportunity, balanced by an assessment of applicable risks. Such

companies may not be assigned a price target.

Investment Risks

Risks to the companies in our sector include risks and uncertainties associated with the global

economic environment and consumer spending, as well as general competition given the

fragmented and low-barriers-to-entry nature of the industry. Restaurant sales are sensitive

to changes in disposable income and job growth, while costs are subject to fluctuations in

commodity prices as well as labor from minimum wage increases and other benefits, namely

health care. Execution flaws and the departure of certain key executives may negatively affect

performance and financial results. Legal, regulatory, political, currency, and economic risks, as

well as changes in consumer tastes, may affect the ability to conduct business in both domestic

and international markets.

Risks To The Price Target