Wendys(WEN) Again

Don't want to turn this into the Buy Wendy's Stock (WEN) BLOG but can't stress it enough. The company is on the verge of turn themselves around. Once they do and the stock goes way up remember where you read it first, here. Good luck investing. Tony

Wendys (WEN)

Looks like I am not the only one noticing the value in Wendys(WEN). I agree with this article that the stock is about to break out of its trading range. Long and Short Term buy. Good luck investing. Tony



By Tommy Hughe

Wendy's Corporation (WEN) has been trading near all-time lows since late 2008. Hit hard by the US financial crisis,

the ensuing recession and an unprofitable merger with Arby's, many are asking when Wendy's will bounce back. The

stock, which lost nearly 75% of its value in one day, has had a volatile year. Currently trading around $5, WEN has

been stuck in a trading range with little hopes of breaking out. What will it take to bring Wendy's back to its peak?

Momentum is weak and without direction, I think the answer is a return to good fundamentals. Wendy's is current p/e is

over 48 with the forward looking version at 24. This makes Wendy's way overpriced. Price to earnings for the the Dow

stocks range between 9-18 with an average dividend around 3%. Wendy's is returning 1.5%.



Earnings in 2011 were weak compared to analysts estimates and are only up about 1.5% from 2010. Loss in the third

quarter of 2011 widened over the previous year to $4 million despite an increase in revenue. However, total revenue

for the quarter grew by 2% to $611.4 million. Analysts were expecting a much larger increase to $619 million. A large

portion of costs were attributed to Arby's, which Wendy's sold earlier in the year. Wendy's sold an 85% stake in

Arby's for a combined cash/debt deal totaling $320 million. During the conference call CEO Roland Smith reaffirmed

2011 guidance. Total growth for 2011 is expected to be 2%. Operating margins for Wendy's owned and operated stores is

expected to be a full percent off of 2010, due in part to rising commodity prices. Fourth quarter earnings are

expected to be released in late January of 2012. So far management has been very tight lipped about its expectations

for 2012.



Wendy's has the future in mind. Forward thinking management is implementing several plans to boost profits and share

price. On the sales front, Wendy's is opening its stores for breakfast. Breakfast sales account for nearly 29% of

revenu in the fast food arena. Wendy's is developing a line of high quality low cost breakfast options and, of course,

good coffee. Another strength, mentioned by CFO William Hare, is Wendy's “ability to generate free cash flow.” This

cash flow is being reinvested in store remodels and updates, among other plans. Wendy's is also engaged in a stock

repurchase plan in an effort to boost share price and investor confidence. Wendy's repurchased $250 million in shares

during 2011. Since the inception of the plan Wendy's has bought 82 million shares at an average cost of $4.84. In 2012

Wendy's is expecting to open 34 new stores, including franchises and overseas operations.



Competitors Yum Brands (YUM) and McDonald's (MCD) are more attractive on paper, and both can be clear winners.

However, a look at the charts suggests they're played out. Since 2009 YUM has increased over 100% from under $25 to

near $60. YUM's momentum is waning, and its market indicators are divergent. The same is true for McDonalds. McDonalds

has been trending up sine 2003 posting gains over 900% in that time and completely weathering the global financial

storm. I'm not saying either of these companies is in for a major correction, but the bull is tired -- they won't be

advancing this year.



YUM recently announced an increase of its guidance for 2011 EPS growth from at least 12% to at least 13%. In the same

statement 2012 EPS growth was estimated at 10%.This announcement was on top of disappointing US results and strength

in foreign and emerging markets. The forward gains are based on estimates of international growth and currency

conversion rates. Given the state of the international economy I would not count on that. China is expecting to slow

by a half percent next year and to have entered a period of extended economic slowdown. McDonalds is expected to grow

at the average rate of 9.5% over the next five years. I think this is fairly optimistic since average global growth is

estimated at 2.5%.



On the long term charts Wendy's looks like it has been trading flat for several years. Momentum is bullish but almost

non-existent. All of the volume spikes are bullish, appearing on up days, and support seems to be there. The short

term charts show something else entirely, a choppy and highly volatile market. WEN has been trading in a range from

$3.60 to $5.75 and is now approaching resistance. Again, momentum is bullish but barely there, I think traders are

waiting for fourth quarter earnings. If Wendy's makes a break above the range it will go straight to $20 before

encountering any serious resistance.



Wendy's is in good shape to break out. Management is dedicated to improving business. Remodeling stores for customer

appeal and comfort, opening for breakfast and focusing on same store sales are a recipe for success. I think that the

entire fast food market is saturated, but Wendy's has room to grow by way of taking market share. Wendy's has been

struggling for so long I think that the stock price reflects a bare bones value of the company. Once Arby's is fully

off the books and capital expenditures begin to pay off Wendy's will do quite well. Positive earnings growth will

bring the P/E ratio back into line with the general market.

New Year's Eve

To all my loyal readers may 2012 by happy and prosperous. Not doing much tonight for New Year's eve. We are going to visit both of our parents. After that will stay in and watch some DVDs. Thanks for reading all year long and good luck investing. Tony

Merry Christmas

I want to thank all my loyal readers for coming here and reading my scribbles. Everyone have a Merry Christmas and/or Happy Holidays. Tony

Wendys (WEN)

I don’t want to tell you,” I told you so.” But read the article below from Wall Street Cheat Sheet. I have been posting what a great Stock investment Wendys (WEN) for over a year. Hopefully can finally break out of its trading range of $4.80-5.50 a share. Good Luck Investing. Tony





Wendy’s to Overtake Burger King for Fast Food’s No. 2 Spot



Wall St. Cheat Sheet – 4 hours ago

Companies: McDonald's Corp. The Wendy's Company RELATED QUOTES Symbol Price Change



MCD 99.105 +0.29



WEN 5.245 +0.19





Wendy’s is set to overtake Burger King to become the second-largest U.S. fast-food chain in sales behind industry

behemoth McDonald’s . Since Wendy’s was founded in 1969, there has been no reordering of the industry-leading trio —

that is, until now.



Hot Feature: Walgreen Numbers Down Due to Express Scripts Dispute



Americans are expected to spend more than $175 billion on fast food this year, up about 3 percent from 2010. Wendy’s

same-store-sales in the U.S are forecast to rise 1.1 percent this year, while Burger King’s U.S. and Canada same-store

sales are expected to drop 3.9 percent, according to market-research firm Technomic Inc.



Technomic’s figures mean Wendy’s sales are on track to be $8.42 billion this year, $53 million higher than Burger King’s

sales. However, the outcome won’t become clear until both companies report fourth-quarter results early next year.



Most notable about the shift is that Wendy’s has gained on Burger King without opening more locations. Wendy’s number of

restaurants in the U.S. has remained flat at roughly 5,800, well below Burger King’s approximately 7,200 U.S.

restaurants.



Wendy’s fortunes have improved since investor Nelson Peltz’s Triarc Cos. bought the chain in 2008, broadening its menu,

changing the lettuce in its salads, softening the edges on its square burgers, and also raising some prices.



Wendy’s has also benefited from weakness at Burger King, which analysts say has suffered in recent years from a series

of management and ownership changes, as well as a lack of menu development, and an overall reliance on young customers

at a time when high unemployment has left much of America’s youth without the money to spend.



However, Burger King spokesman Miguel Piedra says the company is “focused on driving strong expansion in its many

markets around the world,” and that it “will strongly position the brand” to remain the No. 2 burger chain worldwide.

Burger King has nearly 12,400 restaurants worldwide, almost double the number of Wendy’s restaurants around the world.

Wendys (WEN)

The Stock of Wendys (WEN) has been threading water all week. It has been stuck in the $4.80-5.50 range for the last year. Once it closes about $5.50 things are looking good for a short term run to $6.25. Don;t usually like to do short term trades but I like them for a quick buck or better yet for the long haul. I could easily see $8 a share within 2 years. But and hold for the long haul or trade them. If you go the buy and hold route collect the decent dividend while you wait. Good luck investing. Tony

Wendy (WEN)

I have been telling my readers about this company for awhile now. Food costs are going down, great thing for them. They sold off Arbys to focus on their core brand Wendys. They will have a full breakfast menu rolled out in 1000 stores by years end. This alone will add to the top and bottom lines. Breakfast has been the most profitable meal for McDonalds for years. All Wendys has to do is grab 10% of their market and the stock will soar. Get in now while they are still cheap. Good luck investing. Tony