The sassy fast food chain Wendy’s has been firing on all cylinders lately as a world of social media, burgers, Frostys, and square burgers all seem to be big hits with consumers.


ALSO READ: Amazon wants to Go convenient


Wendy’s ($WEN), once not exactly the powerhouse it is now, has seemingly captured increased sales store growth, and impressively so. EPS projections for next year are expected to grow 23.16%, and ~27% next year, and that’s not even the best news. Looking at the past EPS growth, there has been a 70.30% increase over the past 5 years, and a 28.3% growth in sales quarter over quarter.

Are people really buying that many Wendy’s Frostys?

Taking a look at Q2 earnings call slides, we find some interesting highlights:

  • 22nd straight quarter of positive same store restaurant sales
  • 36 global stores opened in the quarter, with 69 global store openings year to date
  • Year over year cash flow growth of 33.6%
  • Increasing or adding deliveries: delivery available in 40% of North American restaurants within the DoorDash partnership
  • Delivery drives an average check higher 1.5x-2x
  • Positive franchisee sentiment
  • Q2 ending cash balance of $195 million

While we don’t get to see a breakdown of how many hamburgers or Frostys were actually made or sold, we can see that Wendy’s is an attractive long term buy who seems to be a smaller, yet effective player within the fast food industry. They may not be McDonalds ($MCD), but they are still a major force to be reckoned with.

Making money on Wendy’s

*** SPECIAL ALERT -- May 10, 2020 -- Motley Fool Stock Picks On FIRE! ****

The recent Motley Fool stocks picks, even with this COVID crisis, are STILL performing well and beating the SP500! Here are some of their most recent picks and their performance:
  • Shopify (SHOP) – April 2, 2020 pick and it is already up 90%
  • Zoom Video (ZM) – March 19, 2020 pick and it is already up 16%
  • DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 17%
  • Tesla (TSLA) picked January 2, 2020 before the crash and it is up 77% compared to the SP500 -12% so it is ahead of the market by 89%
  • HubSpot (HUBS) picked December 5, 2019 and it is up 4%
  • Netflix (NFLX) picked November 21, 2019 and it is up 37%
  • Trade Desk (TTD) picked November 11, 2019 and up 50%
  • Zoom Video originally picked Oct 3 and it is up 87%
  • SolarEdge (SEDG) picked September 19, 2019 and it is up 20%
  • Zoom was also picked October 3, 2019 and it is up 95% since then.
The average stock they've recommended is up a life-changing 346% - more than 4X the return of the S&P 500 ! Now, no one can guarantee that every pick in Stock Advisor will have the same mind-blowing returns as Netflix and Disney. But you sure don't want to risk missing out.

Normally the Fool service is priced at $199 per year but they are currently offering it for just $99/year if you click this link

Hurry! Order now so you will get their next stock pick! Here is the expected schedule of release dates for their stock picks...:

  • June 4 - Tom's New Recommendation
  • June 11 - Tom's New Best Buys Now
  • June 18 - David's New Recommendation
  • June 25 - David New Best Buys Now

CLICK HERE to get The Motley Fool's Stock Picks for just $99 per Year! 

With a street value of $20, and various financial models saying the same thing, buying options could be the way to catch more of an upside to the square burger chain. Looking at a previous close price of $17.32 (9/24/18), we want to buy 17 JAN 2020 $20 CALL options. $1.30 cost per option, and 10 contracts puts our entry point at $1,300. If the stock hits $21 by 23 MAY 2019, sale price would be $2.43 an option, giving you a profit of $1,130, or an 86.9% return on your investment.


INVESTING TIP #27-- HOW TO GET FREE STOCK!

Get Up To $1,000 in Free Stock with Robinhood--the Commission-Free Brokerage!

Open a new account and receive one free stock valued at up to $500! Then, once your account is open, get more free stocks (value from $5 to $500) for each friend, family, person you refer! USE THIS LINK to get started with Robinhood!

LEAVE A REPLY