After making a similar suggestion to the franchise owner of the Wendys location that I sometimes visit his reaction was "we tried the breakfast menu offerings some years ago and it didn't work out well at all". There may have been some bad Wendys experiences many years ago that have put a damper on some people's desire to try the new Wendys. Amazing how people can forget promises made by politicians just days or weeks earlier and then be so easily broken, but getting folks to try Wendys again years later may be a formidable challenge for the new management team.
Kudlow, first it was beef price increases, then it became Greece issues, then minimum wage issues kicked in, then China became a big challenge to our entire stock market, and now we have to wait almost 3 weeks for the WEN 2Q earnings report, which I am thinking will be a pleasant surprise for the longs investors among us. Has anyone else seen the slowly but surely increasing traffic at their local Wendys locations that I am currently seeing at MY local Wendys? Hopefully that top line increase is NOT just happening locally. And maybe the recent up-tick in McD stock is a good omen for Wendys as well.
If things work out the way I expect them to, the success in drawing young folks in may make not just cents, but tens of thousands of dollars for you and me both!
It dawned on me today that the two downers for the current Wendys stock price must be 1) they are using Greece to fry the french fries, and 2) they must be considering using China to serve food to customers. :-(
Ok, on a serious note, I went to the local Wendys for lunch yesterday and the same place where two years ago I might have been the only person "dining in" was yesterday almost standing room only inside!!! I was told that it was a school gathering of some kind, but if this is what it takes to draw the younger crowd in, I am all in with it!
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.