Head to Head Survey: Wendys (WEN) versus CEC Entertainment (NYSE:CEC)

CEC Entertainment (NYSE: CEC) and Wendys (NASDAQ:WEN) are both cyclical consumer goods & services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Insider & Institutional Ownership

80.6% of Wendys shares are owned by institutional investors. 26.5% of Wendys shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.


This table compares CEC Entertainment and Wendys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CEC Entertainment N/A N/A N/A
Wendys 15.86% 21.24% 2.68%

Valuation and Earnings

This table compares CEC Entertainment and Wendys’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CEC Entertainment N/A N/A N/A $2.73 N/A
Wendys $1.22 billion 3.35 $194.02 million $0.78 21.92

Wendys has higher revenue and earnings than CEC Entertainment. CEC Entertainment is trading at a lower price-to-earnings ratio than Wendys, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for CEC Entertainment and Wendys, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CEC Entertainment 0 0 0 0 N/A
Wendys 1 7 11 0 2.53

Wendys has a consensus target price of $17.51, suggesting a potential upside of 2.37%.


Wendys pays an annual dividend of $0.34 per share and has a dividend yield of 2.0%. CEC Entertainment does not pay a dividend. Wendys pays out 43.6% of its earnings in the form of a dividend.

Risk & Volatility

CEC Entertainment has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Wendys has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.


Wendys beats CEC Entertainment on 9 of the 11 factors compared between the two stocks.

CEC Entertainment Company Profile

CEC Entertainment, Inc. is engaged in the family dining and entertainment center business. The Company develops, operates and franchises family dining and entertainment centers under the name Chuck E. Cheese’s. Chuck E. Cheese’s stores feature musical and comic entertainment by robotic and animated characters, arcade-style and skill-oriented games, video games, rides and other activities. All of its stores offer dining selections consisting of a range of beverages, pizzas, sandwiches, appetizers, a salad bar and desserts. As of January 1, 2012, the Company and its franchisees operated a total of 556 Chuck E. Cheese’s stores. As of January 1, 2012, it operated 507 Company-owned Chuck E. Cheese’s stores located in 44 states and Canada and its franchisees operated a total of 49 stores located in 15 states, Puerto Rico, Guam, Guatemala, Chile, Saudi Arabia and the United Arab Emirates. In February 2014, Apollo Global Management, LLC completed the acquisition of CEC Entertainment Inc.

Wendys Company Profile

The Wendy’s Company is the parent company of subsidiary holding company Wendy’s Restaurants, LLC (Wendy’s Restaurants). Wendy’s Restaurants is the parent company of Wendy’s International, LLC (Wendy’s), which is the owner and franchisor of the Wendy’s restaurant system in the United States. Wendy’s is a restaurant company specializing in the hamburger sandwich segment. Wendy’s is engaged in the business of operating, developing and franchising a system of restaurants serving food. The Company operated approximately 6,080 Wendy’s restaurants in operation in North America, as of January 1, 2017. Of these restaurants, 330 were operated by the Company and 5,768 by a total of 376 franchisees, as of January 1, 2017. In addition, as of January 1, 2017, there were 439 franchised Wendy’s restaurants in operation in 29 countries and territories other than North America. Wendy’s is also a partner in a restaurant real estate joint venture with a subsidiary of Restaurant Brands International Inc.

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