WEN

Wendy's Company (The)

Consumer


Presented:11/22/2013
Price:$8.74
Cap:$3.42B
Current Price:$19.52
Cap:$3.97B

Presented

Date11/22/2013
Price$8.74
Market Cap$3.42B
Ent Value$4.38B
P/E Ratio34.44x
Book Value$4.70
Div Yield2%
Shares O/S391.68M
Ave Daily Vol7,270,000
Short Int9.56%

Current

Price$19.52
Market Cap$3.97B
The Wendy’s Company, through its subsidiaries, owns and franchises Wendy’s restaurant system in North America and internationally. It engages in operating, developing, and franchising a system of distinctive quick-service restaurants. The company’s restaurants specialize in offering hamburger sandwiches and featuring filet of chicken breast sandwiches; salads, soft drinks, Frosty desserts, and kids’ meals; and various promotional products on a limited time basis. As of August 13, 2013, its restaurant system included approximately 6,500 franchises and company-operated restaurants in the United States, and 27 countries and U.S. territories worldwide. The company was formerly known as Wendy’s/Arby’s Group, Inc. and changed its name to The Wendy’s Company in July 2011. The Wendy’s Company was founded in 1969 and is headquartered in Dublin, Ohio.

Highlights

With a stock that has appreciated 85% over the past year, Wendy’s is viewed by the presenter as a relatively low-maintenance short at current levels. A subscale operator in a highly competitive space, the company will likely use virtually all of its cash flow over the next 3 years to fund capital expenditures related to the remodeling of company-owned stores, as well as to fund cash incentives for franchisees to remodel.

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Idea Discussion

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