This board is very inactive. There's obviously no excitement, interest, or enthusiasm about WEN. It's another good sign that this is a buying opportunity. I believe that WEN will be back in the low 40s within a year and hit 50 within 2 years at the latest. It's as close as you get to a perfect investment....Low P/E with steady, predictable and virtually guaranteed growth; The often underappreciated protection of having strong established brands; no threat of product obsolescence (we'll be consuming coffee and fast food for some time to come). Ask Merck investors if they now have a greater appreciation for the boring predictability of coffee and burgers. Anyway, as long as WEN stays at these levels or lower, I'll be buying. The only thing I regret is that I can't buy the entire company, and then split it up to unlock the value right away.
I can't give an opinion on TRY. I know nothing about the company, and I know very little about Arby's since there aren't many outlets here in Canada. In fact I think the last time I was in one was 11 years ago while travelling in Arizona. WEN has enough growth propects to get the stock price to $50. I think it's a matter of 'when' not 'if'. And I think $50 within 24 months from now is a reasonable expectation
It's clear that management has finally decided to expand TH more quickly in the US. They said at the analyst meeting recently that they were aiming for 500 outlets by end of 2007, and they would have 260 by the end of 2004. So that will be an expansion of about 80 per year which is much faster than in the previous 3 years. They also said that by the end of this year, they'd have 16 in the Rochester market. Remember that they started in that market less than 2 years ago with 4 or 5 outlets that they opened on the same day. So the concept is definitely proving itself south of the border.
On the contrary, we are very enthusiastic as prospects for WEN stock are plain excellent as you describe. TH/WEN are certainly undervalued.... on virtually every measure, so it is a matter of when, not if. If we could get another dip, for a hd and shoulder bottom, that would be fine too, don't care.
You and I may be enthusiastic, but if the action on this board is any indication, we're in the minority. Although given the small rise in the stock the last few days, it seems that a few more 'enthusiasts' are joining the ranks.