Wendys is a gone-

Discussion in 'Stocks' started by myoffices, Jul 9, 2012.

  1. Just went to due some due diligence at Wendys and realized it was empty. NOT good. I don't think the they survive. If it goes above 5 again a short is imminent. price is now fighting for life at

    After calling the company to ask about marketing a rude Mr. Rhoten was so quick to say no thank you that I have to wonder if the Marketing guy is not happy then the company has to really be up the crapper. Usually the marketing people are the happiest when things are good. They take the credit when good things happen and get the blame ten times over when things are not right.

    Its a short from here and its not coming back. at 4.66 down 2% today.
    Slow in the lunch hours means no revenue in the quarter.

    When you have to reach for the fat over weight Wendys character things are also really bad. Too bad I liked their burgers.

  2. TheBlackHand

    TheBlackHand Guest

    Me too.

    I mean square burgers! How cool is that!!!

    The only thing I didnt like about Wendys (the one on Broadway, downtown) was the rude staff, low life junkies, and a toilet that was never cleaned and stank to high heaven.


    I like wendy's. Especially their seasonal deep sea cod burgers.
    There are regular lineups at the Wendy's I go to, (2 of them) in vancouver.
  4. The company was doomed from the start by having a redhead ( aka a Ginger) on its corporate logo. We know Gingers have no souls and are evil people:

    1) Lucille Ball - a communist who gave birth to Little Ricky in 1953. Who else was born in 1953? David Berkowitz. Was "Little Ricky" really David Berkowitz? We may never know.

    2) Margaret Sanger - she was the advocate for birth control. No doubt a baby killer.

    3) Judas Iscariot - One of the twelve disciples of Jesus Christ who betrayed Him and identified Christ for Roman soldiers for 30 pieces of silver.

    4) Lynette “Squeaky” Fromme - Charles Manson family member involved in the plot to kill Ford.

    5) L. Ron Hubbard -- scientology, no need to explain further

    6) Napoleon Bonaparte - being French is enough to list him as evil

    7) Thomas Jefferson - freedom for all except for the slaves cause otherwise he would have to work on the farm

    8)Vincent Van Gogh - shit paintings that get way too much praise, cuts off his ear for a hooker - really wtf!

    9) Vladimir Lenin - bad man

    10) Malcolm X - hated by southerners

    The reason why Wendy's taste so good is because of evil Ginger magic.
  5. TheBlackHand

    TheBlackHand Guest

    Wow. I never knew Malcom X was a ging-er. Was that afro a wig then? Same for Judus Iscariot.

    Either way, I bet they both ate at Burger King - the food of low lifes.
  6. I didn't realize the stock was so volatile. I spoke to some Investment M & A guys who said they have no value on the open market and with a less market cap than what MCD spends on advertising soon they are better off dead. Wow a violent board ---- LOL

    Its summer time--- Time for the shorts to do what they do best. I think a penny stock or bankruptcy comes next. Its a shame how the market has fallen. Maybe 50 cent burgers would bring them back. Like a white castles upgrade.
    Read this as support-

    The Beef Equity promotion was developed to engage consumers and teach them about our hamburgers. In particular we explain why our hamburgers are better than our competitors. We created interactive games and videos that walked consumers through each of the four pillars that sets Wendy’s apart from the rest (Fresh Never Frozen Beef, 100% Pure Beef, North American Beef and Made to Order ). We were able to draw consumers to the application by rewarding them with a promotional prize of a vintage style T-shirt upon completion of all the pillars. In total, Wendy’s gave away 100,000 vintage style T-shirts to Fans that went through the entire application. The first 50,000 were given out within 2 hours and 47 minutes beating all expectation and we saw similar results two weeks later with the second 50,000 T-shirts.

    And weeks later the stock tanked. http://www.advertisingcompetition.org/iac/winner.asp?eid=8353

    when you have to give a way T-Shirts to sell burgers something is wrong.
  7. Looks like the stock tanked four years ago to todays levels and has been trading flat ever since. So why the sudden interest in WEN?


  8. Its a momentum play that if it trades below that faces different levels of pressure and its seems to be fighting to stay above margin levels unsuccessfully.

    Many funds cannot justify owning it if it trades below these levels . No Momentum no volume and with sever consolidation occurring in the markets. Many old stalwarts are becoming extinct take your pick. MCD is doing okay with lack luster growth so the last in the bunch has to be doing terrible.

    This is one I believe fits the bill of on its way out. What can be done to save this dinosaur. Todays signal is really bad down 2% so Its now on my list to watch. Its widely held. It "may" get squeezed short term but then its off to the pits. This time the 3.90 bottom may not have any support to prop it up. If ever a time to write it off was possible would be now with gains from this market. Low rates mean its still not over.

    http://seekingalpha.com/article/701021-wendy-s-don-t-jump-into-the-deep-fryer?source=yahoo see quote below.

    If this was my loser I would dump it and wash it with this years profit lock in my 20% for the year in profits and go fishing as we near elections. With the more taxes coming next year we will start to see many wash sales in the next 4 months. :cool:

    Wendy's (WEN) is a well-known fast food chain. While I must admit that I do like their spicy chicken nuggets every once in a while, I'm a little less enthused about their stock. Here's why.

    Premium valuation. Wendy's P/E is 58.6. Compared to a P/E of about 16 on McDonald's (MCD), it's hard to believe the Wendy's valuation is justified on any level. (Is Wendy's intrinsically worth 4x more than Golden Arches? I think not.)
    Wendy's forward PEG ratio (5-year projected) is 4.18. Again, unjustifiable valuation.
    Wendy's forward long-term EPS growth, at 14%, doesn't look positively awful -- but again, it doesn't justify sky-high valuations.
    Wendy's isn't particularly efficient. Wendy's gross margin is 25% (vs 45% for McDonald's). Wendy's profit margin is a dismal 2%, compared to 19% for McDonald's.
    As could be expected from margin, Wendy's return on equity is a very sad 1.5%. For comparison, McDonald's has a return on equity a few basis points above 38%.
    Wendy's chart shows flat multi-year price action. While I typically like buying discounted, beaten down stocks, you'll notice from the chart below that Wendy's dropped off a cliff after the financial crash and it's never really recovered. I'll buy dips (temporary weakness) but you'll have a hard time selling me on a stock that looks so bad just from the chart.
  9. piezoe


    The need to higher a designer. No junk food outfit that is as ugly as Wendy's deserves to live.
  10. I worked at Wendys as my first job when I was 15 .

    Learned more Spanish in that kitchen than I ever learned in 3 years of high school Spanish class.

    Also saw my first pair of tits in the freezer at Wendy's . Quality place , I'll miss it :)
    #10     Jul 9, 2012