With take home pay stagnating as inflation plows ahead at almost 4% while home prices and rental fees are going up, and interest rates are about to go up, up, up, it seems inevitable that locations like Wendys will see an ever increasing traffic. Young folks with huge college debt who may not have monthly Social Security checks when THEY retire may have to accept the reality that putting some money aside for their later years may have to become a primary motivation in their lives. Just avoiding the 15% waiter's tip alone in full service restaurants could make the foundation for this ever increasingly important individual savings account for the future. Wendys is in a great position to grow and prosper from all of these challenging realities of the future.
Sentiment: Strong Buy
Well Porch, I think your point here is logical and valid. If so, then this should take some of the sting out of the coming dips in WEN. And your estimated down 70 cents and up a dollar eighty in the next few years therefore makes sense. My thought is that the closings for remodeling that are depressing top line sales for the next 19 months or so should make an easy base figure for explosive top line sales gains starting in 2017. I just hope that the overall market holds up beyond 2017!
On CNBC this morning they reported that Wendys is buying back "about 1/3 of the outstanding shares (or was it "as much as a third of the outstanding shares"?). I know that Jim Cramer is really optimistic about the future of Wendys. I know that I personally see way more inside traffic at my local still-to-be-image-activited unit than I was seeing 2-3 years ago when I was having lunch inside by myself at times. Today I am very glad that I am a "decade" trader in Wendys!
Porch, I am still on board with more WEN than I probably should have in my portfolio. I know that this image reactivation process is drilling a hole in the top line sales for the next 18 months or so, so I am looking further out for WEN to explode upward. I have NEVER sold one share of my WEN stock. Maybe I can be called a "decade trader". I am in at $5.51/share, so I am not at all disappointed with my current capital gain of a little over 100% for the roughly 4 years that I have been in. And yes, I too have been saddened to see so fewer postings on this board from some of the message posters of yester-quarters. But I have little doubt that the new top management team is doing a much better job of rebuilding Wendys into a winning business. So I am all in.
The Wendy's food is fresher than McDonalds food, and so is the business! I remember being really impressed back in the late 1950's when I saw the new McDonald's restaurants for the first time.
Porch, given that each "image activation" can take up to 3 or 4 weeks, I am not surprised that their total top line sales are somewhat subdued, as the inside sales, at least, at those locations being updated are wiped out for that renovation period.
Sorry to say that I had to give up watching Fox Business when they did away with their quotes by segment, and we were left with a single line of randomly selected quotes. I watch CNBC now since they at least have TWO quote lines to watch. Oh well.
Are we to give credit for this sudden Wendys rally to the dividend doubling, or perhaps the coming 1Q earnings announcement on Wednesday (5/6)? Given that the near term earnings expectations of folks on this message board have been rather ho-hum, it seems to me that the spike today was driven by the substantial dividend increase that was announced last Friday. The TIME when that dividend increase was made public is unknown to me, but with only a 3 penny rally on Friday, I am assuming that it was announced AFTER the market closed. Any input that would help this old investor better understand the younger investor's mind set would be greatly appreciated.
This might require that a CURRENT picture of Wendy would have to be displayed next to the picture of her father! Currently the 8-year old image of Wendy prevails on the cups and paper wraps. Or maybe just relabeling the brand "Daughter Wendy International" would make sense. And Wendy's could then offer the "DWI burger"! . . . . . (just kidding. I like the idea too.)
Thanks for the history lesson on Wendys vonmax2. Well, I was not aware that I had bought into WEN so soon after they went public. I am in at slightly over $5.51/share, and I am very optimistic about what lies ahead for Wendys. I have not found out when on Friday the dividend increase by a factor of 2 was announced. Since the stock was only up 3 cents on Friday, I am guessing (and hoping!) that the announcement was made after the close on Friday. The folks at my local Wendys locations are all very friendly as they serve the really good value foods to folks. I will always remember seeing the order filler at a McDonalds on the upstairs area at the Las Vegas Circus Circus casino screwing up a man's order, and arguing with him over the error. The man went back to join his wife and two children and very soon the casino police showed up at his table! The comparison seems to favor WEN in so many ways!
And I still think that a "photo shopped" Dave Thomas dancing with his 8 year old daughter Wendy, as seen in the famous movie "The Little Princess", with Shirley Temple dancing with Arthur Treacher, and Wendy could interrupt the dance in various versions of the commercial to ask her dad "what are you fixing for us tonight dad?", to which "Dave" could respond with the new offerings being served. Or the tried and true offerings. It just seems like an attention getter to me.
Gunks, I visited one of my two closest Wendy's locations today with the plan of eating lunch. It looked like they were redoing the front of the building, which they ARE doing. The franchisee owner happened to be there, and he showed me through the INSIDE, and it is totally gutted forward of the order counter, which was totally invisible. The drive through was still operational though, and there was a line of five or six cars in that line! But it is not a stretch to think that having the "eat-in" traffic blocked until some time next month, along with the other units going through this "image activation" process, that the top line sales may be under pressure for the next few quarters as this image activation is completed. So I am going to hang in there for the ultimate long term capital gain. My mother, whose favorite place to eat was Wendy's, always told me that I was a stubborn dude.
When I started investing in stocks about 50 years ago I took my broker's advice in my stock selections. None of them did very well, so I decided to use my own intuition in the selection process from then on. That is until Charles Payne on Fox Business strongly suggested buying SSYS when it was up around $132/share. I thought that maybe I was over looking prudent financial advice. Well, within less than a month it started diving in value to the present value that is less than 50% of my purchase price several quarters ago. Of course not many moons later it was Charles Payne strongly suggesting SELLING SSYS when it had dropped down to around $60/share. In other words, by then I had decided that the professional advice may not be all that prudent after all. But I do have faith in the future of 3D printing, so I am hanging in there with my SSYS. Don't know if I should be worried or not now that HP (I think it is) is getting into that business too. Oh well, it is a small percentage of my portfolio, so I guess I am going to hang in there. Since I am now going AGAINST the warnings of Charles Payne, I feel much more optimistic. I feel Payne free now.