Gentle reminder: WEN is Peltz's buyout from 2 years ago
WEN is a buyout. On 4/24/08 Wendy's announced the sale of the company to Peltz's holding company Triarc (which was a franchisor and operator of Arby's). It was an all stock deal, whereby each share of old Wendy's received 4.25 shares of Triarc. The shares you own or trade today are effectively Triarc shares. They were priced at $6.41 per share just before the buyout was announced, and it closed on 9/30/08.
Why did Wendy's board sell out to such a crappy company in an all stock deal? The answer is simple: Wendy's also is a crappy company, and, despite Peltz holding their feet to the fire and trying to force a sale of the company for the 2 preceding years, they failed to find a buyer, strategic or financial. Peltz then was stupid enough to become his own stalking horse and offered to buy Wendy's himself - hoping that would flush out the buyer who never came. Now Peltz owns it, but the joke really is on all of the Wendy's shareholders who got paid with Triarc stock. All the promises of merger synergies, new management and new strategies were all a mirage. Doing the math: they are down 39% from then. This thing is a mess.
Now, what makes you think that if there was no buyer 2 - 4 years ago during the height of the credit bubble, there will be a buyer now? Don't kid yourselves. Oh - and there's an extra $1 billion of debt on the company now.
500 million in cash, means 500mil in debt what have I missed, and THL burned by Apollo, makes for a new fool who wants to jump into the FS arena... Share float has been reduced because of re-purchase.
But my friend this a Mess, who the hell gives a dividend, who do they think they're YUM or MCD, and for the free sandwhich, I hope they were getting rid of the old stock. Why not come out with the roll-out of new salads, same vendor, to both Arbs and Wendy's, who is on their marketing team. Time to start offering some of the same lines at both.
As you said this is a mess, then we have some chic who is a stock guru, saying not be worried that we're hitting 52 wk lows in a mkt, that should be accelerating in leisure food, its convenience honey.
Look for higher lows and lower lows, not a basher or a short, but this Mgmt., are a bunch of Gildings....Time to strat selling the Arbs RE..Do it you overpriced suits, pay to perform...