Even if you ignore the hype, Wendy’s is actually a cash generating business, and it has great future potentials. These are the key points I can think of right now:
\- Even at today’s price despite the rally, it is still an undervalued stock. the forward PE ratio is just around 10x which is heavily undervalued in the fast food sector.
\- The new CFO and CSO are not just nobodies. They have a great historical performance in potbelly. Due to their key strategies, it resulted in 500%+ in share price of Potbelly.
\- WEN is giving an enormous dividend of 7% so it is practically giving you FREE Wendy burgers, fries and forties every quarter.
\- There are rumors of a stock buyout which could catapult the stock even further.
\- International expansion has shown great growth and WEN is continue to deploy this strategy. WEN is targeting 2,000 international restaurants by 2028, and 1,000 restaurants in just China alone over the next decade.
\- Short interest of 34% is a massive powder keg. The key reason why is because it is very heavily concentrated at the absolute bottom stock price.
TLDR: this is a legitimate business backed by executives with great historical performance, massive global expansion, buyout interest while giving you a great dividend yield.
Position: 2,000 shares at $7.66