Who nows maybe its a $30 stock masquerading as an $8????
Most bashers here are delusional, they are caught up in a paradigm and cant believe that the stock has a bright future ahead and that the sub 5 days are over. Wall street is finally discovering WEN. Just my opinion do your own dd. I saw the same pattern with KKD and SWHC the bashers there just could not believe their own eyes!!!
You are relying (hoping) that financial engineering pushes the stock higher. That is a big gamble. The estimates for next year (even if they beat and generate .40) would give them a price of $8 with a 20PE. With sales growth under 5% would you be willing to pay 20 PE when you could invest in other areas with a better return proposition.
Does KKD have 400 million shares outstanding like WEN? LOL! It will take a nuclear bomb to move the needle here. Q3 proves that the pretzel bun was all hype and no results. It did not move the needle. It did not amount to anything. And that was their best hope in the last 5 years. It's over. All downhill from here. They gave it their best shot, and the best they had amounted to a $9 high water mark. But the flood has crested and now the water recedes back into the river from whence it came.
I don't think the story here is about a temporary product like the pretzel bun.
The story is about the company being proactive in establishing good branding, strong relationships with franchisees which translate into well run, well managed establishments (avoiding a scenario that MCD saw several years ago), and positioning themselves more as a hybrid of a fast food and a casual dining restaurant. The fresh marketing campaign, the lead in temporary products, and the attention to well run stores has to be viewed as a whole. It is not about one sandwich making the company. Bringing in some temporary items (similar to McRib) and various times is only a small part of the overall strategy.
I think this is a good stock to own long term as it will offer a lot of upside and I think the risk is really quite limited. If the stock went to 4 dollars, over a several year period, it is not going to stay there. So, I would pick up at least 1/4 of what I wanted now. If the stock proves itself above 9 again, pick up more. For those really worried about a 4 dollar price, simply keep 50% of your powder dry and then pick up the rest at 4 (if that ever happens) and you will have a good long term stock imo.