Stock in Focus: Wendys Company (WEN)

Company Profile:

The Wendy’s Company, together with its subsidiaries, operates as a quick-service restaurant company. It operates through three segments: Wendy’s U.S., Wendy’s International, and Global Real Estate & Development. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches. As of December 29, 2019, it operated approximately 357 company owned restaurants; 5,495 franchised restaurants in the United States; and 936 franchised restaurants internationally. The company also owns and leases real estate properties. As of December 29, 2019, it owns 512 and leases 1,248 properties, which are leased or subleased primarily to franchisees. The company was formerly known as Wendy’s/Arby’s Group, Inc. and changed its name to The Wendy’s Company in July 2011. The Wendy’s Company was founded in 1969 and is headquartered in Dublin, Ohio.

Recent News:

The company reported second-quarter net income of $24.9 million, or 11 cents per share, down from net income of $32.4 million, or 14 cents per share, last year. Revenue of $402.3 million was down from $435.3 million last year.

The Company announced the declaration of its regular quarterly cash dividend of 5 cents per share, payable on September 15, 2020, to shareholders of record as of September 1, 2020.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

WEN’s strengths can be seen in better growth and strong profitability compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, MACD is trying to cross back up and the RSI stands at 46.16 with positive bias. We rate Wendys Company (WEN) a STRONG BUY.

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