Cambell's Soup (CPB)

Been looking into this company and I like what I see. Management is cutting costs and making the right moves to start growing this company again. The dividend is 3.5% at a low payout ratio of around 40%, so easily maintained and hopefully will be raised soon. That and food costs have been way up so they should level off from here. Once food costs start to fall it will go right to their bottom line as profits. This is a long and short term buy, IMHO. Good luck investing. Tony

Wendys Article

Here is another article I agree with about Wendys (WEN). Good luck investing. Tony

Burger Wars Heat Up As Wendy's Moves Into No. 2 Slot

March 1, 2012 by: Jack Holland | about: WEN

Wendy's (WEN) earnings call today was an eye opener. For investors willing to buy in now while the stock price

hovers around $5 per share, Wendy's offers a compelling opportunity. Wendy's is currently kicking off a three

year turnaround plan that got underway last fall with its new Hot 'N Juicy burgers and a new addition to the

burger lineup called the W.



The turnaround strategy is a comprehensive one, calling for not only a revamping of stores from the inside out,

but a total image makeover involving retraining from top to bottom and ensuring that all employees have a smiling

face and a can-do attitude starting with top management. If franchisees do not wish to go along, Wendy's may just

opt to buy them out or hook marginal franchises up with winners that believe in the turnaround story. Top

management today noted that they have a considerable number of top notch franchise owners willing to expand their

ownership of the brand.



For a look at the sharp new restaurant facelift, click here. Wendy's has developed four different visual concepts

to test and determine what works best in what market. The concepts are designed to better engage the customer and

enhance their in store experience. Phoenix has been a test market for some of the new stores and Wendy's top

brass noted that franchisees having been ringing the phone off the wall asking as to when they will be able to

buy-in to the concept. This year, Wendy's intends to reimage 50 stores and is currently working to line up

financing for its franchisees. All the new stores, reimaged stores, and all franchisee stores in general are also

receiving updated POS systems that should produce incremental savings to the bottom line over time and reduce

everyday worker frustration with customer service delivery.



Wendy's is also adding breakfast to its menu and is currently working through the concept in test markets in the

northeast. One of the concerns noted by management and one analyst on the conference call was the time it takes

to deliver the product to morning customers that are always in a hurry. Delivering a freshly cooked product takes

time, but management noted they are working through this issue.



One of the more interesting questions was regarding the value menu. Its seems the menu is almost too good to be

true, and thus management may consider trimming back some items being made available. From a personal point of

view, I concur with management on this one, for Wendy's currently has the best darned dollar cheeseburger on the

planet that is served up with a slice of red onion, tomato, lettuce, and pickles along with the standard sauces.



Matter of fact, this is where I personally believe Wendy's is leaving a pile of money on the table.



Prior to the launch of this burger, I used to go with a Wendy's single meal deal. Now I can purchase a small

premium cheeseburger which agrees with my high cholesterol and my doctor, a dollar coke, and a dollar fry for

three bucks. Thanks Wendy's.



I like what I see. And given a share price that has been trading sideways for a couple of years now, this is a

great time to get in prior to the fruits of Wendy's efforts filtering down to the bottom line. Wendy's earnings

per share in the fourth quarter were in line with expectations, or a penny per share. And they are currently

paying a 2 cent dividend per quarter.



Look for a new Wendy's ad campaign to kick off this spring which should boost share growth. According to a recent

article in Advertising Age, it was noted that Wendy's surpassed Burger King to take the number two burger selling

spot in America, and according to Advertising Age, taking share away in a tough market such as burgers is no a

small feat.



Wendy's is a stock long-term investors may wish to begin accumulating. Should the turnaround strategy succeed, it

won't be long before the shares are hitting the $10 range and beyond. I am personally looking for a minimum of a

25% return on this stock over the next 12 months. Another plus is that Wendy's only has 389 million shares

outstanding after completing a major buyback program over the past couple of years. And finally, some pretty

major analysts are following this stock, so I will be looking for a few upgrades over the next year or so.

Wendys (WEN)

The turn around is in full swing. They are starting to remodel select stores. Thing is they need to invest 750K in each store to totally give it a make over. This will retard earnings in the short term but long term shareholders will reap the benefits over time. Already the stores that have been remodeled have seen large jumps in sales. The shares are again trading at the lower end of the their short term range around $5 a share. You could buy here and sell at $5.50 for a quick 10% pop or hold for the break to $7.50 a share. Long term I still believe in managements ability to right the ship on this one. Good luck investing. Tony