This quote from Warren Buffet was included in a site under a WEN news story about the new menu thrust at fast food burger brands. Both side salad and main course salads are being ordered more and more. Although Wendy's won't give out numbers, it is clear that they are one of the leaders in this trend. And now that quote from Warren Buffet: "With a wonderful business, you can figure out what will happen; you can't figure out when it will happen. You don't want to focus on when, you want to focus on what. If you're right about what, you don't have to worry about when"
Since my average cost for WEN is $5.48/share, and I have only held it for less than 3 yers, and it is up a little over 50% from my buy-in, I think an average increase of 17%/year is good enough for this old retired guy. And each $6 2/3 per share that it rises from here will be another cool million dollar profit. It may take two or even three years to get above $13/share, but I am pretty much convinced that it will be worth the wait.
I think Cramer on CNBC this am was saying that Wendy's owned Tim Hortons until about 2006 (or was it 2009?), but sold out, just as they did later with Arby's since I have owned Wendys stock.
Thanks gunks. I would just like to know why the busiest Wendy's location in my area CLOSED several months ago! It was located very near our town hospital, and I assume that the extra traffic there was because of proximity to the hospital. But closing it down just seems wrong. There must be a story behind the closing that has not been shared with stockholders.
I had lunch at a local Wendy's today, and the parking spaces were almost all filled, and when I entered the ordering line was almost back to the entrance! At least nine of the inside tables were in use as well. This has NEVER been the case at that particular location. The lady in front of me in that long order line turned and said "I am not going to wait a long time to order my lunch", to which I replied as she was exiting the place "I myself love the wait since I am a stockholder!". It looks like WEN may finally be taking customers away from the other brands. Am I the only one noticing this increase in store traffic?
Until recently I was not happy being the ONLY eat-in customer at a local Wendy's, and dining alone was not just a one time thing. When the Burger King next door closed down, things still seemed a bit gloomy at my Wendy's next door. That is until the Krispy Cream that took over the old BK building next door got through with their renovations. Today, there were a dozen tables occupied as I had my lunch at Wendy's, and at least half a dozen in line to order as I was leaving! This is the second day that I have seen such an increase in traffic at this Wendy's location. I am starting to get excited about being long in Wendy's!
choptank61, maybe my idea of having a very young Wendy (or Shirley Temple from the 1930's) dance with her father (or Arthur Treacher) wasn't a huge winner for stockholders on this board, but how about Wendy's raising their prices to cover the increased meat and food costs, and THEN telling anyone who dined at McDonalds, or Burger King, or Arby's, or any other burger location of choice, to simply bring in their receipt from that listing for the current week, or month for a _______% discount at Wendy's. The 5 or even 10% discount might give people incentive to come to Wendy's for the first time in years for a direct comparison with what they recently had elsewhere. Or, how about handing out a free share of Wend's sock at each location each day. I know that I myself would not even THINK about going to other than Wendy's for lunch or dinner when I go out for a quick serve meal. Any thoughts would be much appreciated. Thanks. .
Since Vladimir Putin is making himself into hamburger meat on the international stage, it makes me wonder if the people of Russia will soon be dining on their current leader! Lettuce hope that Putin's current pickle will end up tasty and well for the people of Russia!
rhomolka10, I saw yesterday that some of the full service brands are hurting because of the rapid increase n the cost of beef (and other commodities as well, I betcha). I am hoping that as more and more folks at he lower end of the income range are required to spend less when they dine out that this will actually help the quick serve folks like Wendy's. Keeping up with food price increases in the finished product pricing is essential though to increasing bottom line earnings growth. I myself am holding on to this future winner.
Good luck dsc! Within 22 hours, when the 2nd quarter earnings for WEN are announced, we should get a glimpse of the status of your "good luck". I am not holding my breath till that earnings release tomorrow, but this in ONLY because I want to be alive when that report is released!
And one more quote from the past that I have seen time and again - "A bull market climbs a wall of worry". Since we are now seeing that "wall of worry", I am not all that concerned about a sudden downturn in our stock market.
I remember an older guy named John Templeton who was often a guest on Louis Rukeyser's Friday evening TV show called "Wall Street Week" - probably from the 1980's, when the DJIA was in the 1,000 - 2,000 range. He predicted a DJIA of 25,000, and I think everyone was blown away with that prediction. Well, it will now take less than a 50% growth in the current DJIA to reach that prediction! And remember, the constant devaluation of our US dollar by our stealth government actions will make that 50% "growth" happen even sooner than would otherwise be the case.
the.gunks33, the main thing that could "sink all boats" may not have even been thought of at present. Of course we know about the possible inflation coming at us in the coming quarters, and the probable rise in interest rates that may pull US government and even corporate bonds out of the current trash heap, but those are only the current risks that are center stage at present, resulting in P/E's being as high as they are at present. But I just don't see my mattress as being a viable alternative to being invested in common stocks at present. So I am into WEN big time in my portfolio. I really like the food quality and the changes being slowly but surely made. And if disposable incomes slide further down from here because of the ACA, or further increases in off shore competition, then Wendys should be in a sweet spot unless some of the downers I mentioned earlier become reality before Wendys can get it firing on all 8 cylinders. The race is on.
the.gunks33, thanks for your input. I honestly don't remember thinking about the dance sequence in the subject 75 year old Shirley Temple movie as a commercial opportunity for Wendys in 2012. I HAVE made this suggestion about 6 months ago to the guy at corporate who heads up their advertising activities. It just seems like such a natural for Wendy to be dancing with her father as they discuss new menu items at her dad's new restaurant, etc. Now I myself was born 2 years after that film was made, so clearly I didn't see the original release. Heck, Wendys could even offer a children's menu called "The Little Princess". It would be fun to see if Wendy herself has SEEN this movie, and what SHE might think of my suggestion. But I guess it is time for me to give up on this idea. You are probably right. Most folks are NOT Turner Classic Movie fans, so the idea might not resonate as much with most folks.
On Turner Classic Movies tonight from 7-9pm CST a movie from 1939 is being aired in which Shirley Temple, as a 7 or 8 year old, is shown doing a dance routine with Arthur Treacher. It would be great if Wendys could somehow either use, or reproduce that scene in their commercials - Wendy dancing with her dad Dave Thomas as she tells him that "his hamburgers are so delicious that he should start a hamburger restaurant chain!" Interesting thing is that Arthur Treacher's name was used for a fish restaurant chain in the1970's similar to today's Long John Silver chain. Franklin Roosevelt once said that Shirley Temple did more to bring us through the great depression of the 1930's than his New Deal. Maybe she or her modern day equivalent could work similar "commercial miracles" for Wendys. At least Dave Thomas must have thought so.
At first, when I saw the Burger King next to my closest Wendys shut down, being a Wendys stockholder, I felt relieved. But then I saw that the BK site was being upgraded on the outside, with a lot of workers busy working on the inside. I thought to myself "Oh no, they are going to BEAT Wendys next door with THEIR OWN "image activation"! Just to make sure that my depression was justified, I walked next door, on my way out of Wendys after having enjoyed another really good lunch, and there by the open door was a "Now Hiring" sign, and the phone number to call, followed by the words "Krispy Creme"! It will be fun to see if a donut shop can compete with the high quality menu offerings at Wendys!
The quality rating of most all fast food restaurants as revealed in a new Consumer Reports survey (which is covered in today's NEWS on the Wendys site) reveals that Wendys received the highest rating in the burger segment among all the publicly traded companies. I urge each of you to look at that new report, and then explain to me just why our Wendys stock price is DOWN so far today.
lanabargercsw, I know that Apple Pecan Chicken salad is also my wife's favorite menu item at Wendy's. I sometimes share the full size salad with her. I usually include MY favorite which is the crispy chicken Caesar Wrap sandwich. I always ask for the BBQ sauce to add to it, along with five of the tiny black pepper "shakers", and I am either one happy lunch muncher, or a delighted dinner grinner!
All I can say is that I am pumped to see the "eat in" traffic going from one or two cars in the parking lot, with maybe one other inside diner chowing down as was the case perhaps a year ago for the Wendy's location I most frequently go to for lunch, to the current as much as two dozen cars in the parking lot, and double digit occupied table counts of today. Hopefully that top line increase at this particular location is representative of other Wendys locations. And the recent menu price increases make sense, given the recent food cost increases. As a Wendys long, I a pumped.
toast, given that he received more than 4 times as many disapproval votes as the rest of the board received individually? I think Schwab has been the head of the WEN compensation committee for 17 years now. A committee that arguably put too much emphasis on top WEN management salary increases without sufficient consideration for company growth to justify such increases. Seems like it would be a great time to make top management salary adjustments downward as the heat to increase the fast food worker's minimum wage upward heats up in many cities. When I was a young investor it cost a bunch just to buy a few shares of stock, so I was more linked in with the annual meetings than many investors of today. Now an investor can trade any number of shares for under ten bucks, so he or she is often GONE by the time a CEO/top management face-off takes place. So the CEO selects his choice for the board of directors who is sometimes the same board member that is put on the compensation committee. And thus the new board member keeps his position by standing firm for sometimes unjustified top management salary increases. Perhaps it is just an unintended consequence of computerized trading. Returning to pay standards given top management in other parts of the world would make sense to me, given that we are competing with those in other parts of the world. Just my humble opinion. Sorry if I offended anyone with this question.