WEN

The Wendy's Co

Consumer


Presented:08/12/2015
Price:$9.99
Cap:$3.70B
Current Price:$19.52
Cap:$3.97B

Presented

Date08/12/2015
Price$9.99
Market Cap$3.70B
Ent Value$5.32B
P/E Ratio38.78x
Book Value$4.78
Div Yield2.3%
Shares O/S370.54M
Ave Daily Vol5,425,571
Short Int10.68%

Current

Price$19.52
Market Cap$3.97B
The Wendy's Co. is a quick-service hamburger company. The company operates through its subsidiaries, which include Wendy's Restaurants, LLC and Wendy's International, Inc. It provides various hamburgers and related products such as chicken breast sandwiches, nuggets, chili, baked potatoes, french fries, freshly prepared salads, soft drinks, milk, coffee, frosty deserts and kids meals. Wendy's was founded by R. David Thomas on November 15, 1969 and is headquartered in Dublin, OH.

Publicly traded companies mentioned herein: Domino’s Pizza Inc (DPZ), Dunkin Brands Group Inc (DNKN), McDonald’s Corporation (MCD), Restaurant Brands International Inc (QSR), Wendy’s Co (WEN)

Highlights

The presenter is short shares of Wendy’s (WEN) based on his belief that the company has already pulled all of the financial levers it had at its disposal and is now over levered and lacks future catalysts for growth. Competition from McDonald’s, which “has to start growing comps”, will likely take share from WEN and Burger King, while growth of specialty burger restaurants such as Five Guys and other regional chains will likely continue to chip away at the overall share enjoyed by the incumbents. He outlined the bearish view as follows:

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Idea Discussion

Commentor 1 - 2 weeks ago

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