Wendys Story

<div class='circular--portrait' style='background:#8B008B;color: #ffffff;font-size:3em;'>WEN</div>
WEN -- USA Stock  

USD 21.34  0.14  0.66%

It looks like Biglari Holdings will be up for a correction way faster as its share price whent up 8.78% today to Wendys's 3.2972%. As many baby boomers are still indifferent towards consumer cyclical space, we will concentrate on both Wendys Company as well as Biglari Holdings. We are going to inspect some of the competitive aspects of both Wendys and Biglari.
Published over a month ago
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Will Biglari Holdings institutional investors switch to Wendys (NASDAQ:WEN)?
By analyzing existing basic indicators between Wendys and Biglari, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Biglari with a short position in Wendys. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Wendys has an asset utilization ratio of 33.34 percent. This suggests that the company is making $0.33 for each dollar of assets. An increasing asset utilization means that Wendys Company is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Wendys or Dunkin is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Wendys dividends

A dividend is the distribution of a portion of Wendys earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Wendys dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Wendys one year expected dividend income is about $0.24 per share.
Wendys Dividend Yield is quite stable at the moment as compared to the past year. The company's current value of Dividend Yield is estimated at 0.07. Dividends per Basic Common Share is expected to rise to 1.86 this year, although the value of Payment of Dividends and Other Cash Distributions will most likely fall to (86.9 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-80.5 M-86.9 M
Dividend Yield 0.07  0.07 
Dividends per Basic Common Share 1.56  1.86 
Investing in dividend-paying stocks, such as Wendys Company is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Wendys must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Wendys. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Wendys's Liquidity

Wendys financial leverage refers to using borrowed capital as a funding source to finance Wendys Company ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Wendys financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Wendys's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Wendys, but it might be worth checking our own buy vs. sell analysis

Correlation Between Wendys and Dunkin Brands Group

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Wendys together with similar or unrelated positions with a negative correlation. For example, you can also add Dunkin Brands to your portfolio. If Dunkin Brands is not perfectly correlated to Wendys it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Wendys for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between WEN and DNKN for more information.

Note

Are you currently holding both Wendys and Dunkin Brands in your portfolio? Please note if you are using this as a pair-trade strategy between Wendys and Dunkin Brands, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Acquisition by Abigail Pringle of tradable shares of Wendys subject to Rule 16b-3

Legal trades by Wendys insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Wendys insider trading alert for grant of restricted stock units by Abigail Pringle, Pres Intl & Chf Developmnt Ofc, on 17th of September 2020. This event was filed by Wendys Co with SEC on 2020-09-17. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Details

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me take a closer look at Wendys revenue. Based on the latest financial disclosure, Wendys Company reported 1.37 B of revenue. This is 80.79% lower than that of the Consumer Cyclical sector and 46.94% lower than that of the Restaurants industry. The revenue for all United States stocks is 85.48% higher than that of Wendys Company. As for Biglari Holdings we see revenue of 622.68 M, which is 75.88% lower than that of the Restaurants

Wendys1.37 Billion
Sector2.58 Billion
Biglari622.68 Million
1.4 B
Wendys
2.6 B
Sector
622.7 M
Biglari

Can Wendys build up on the latest thrive?

Latest maximum drawdown is at 12.3. Wendys Company currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.25. However, we do advice investors to further question Wendys Company expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on Wendys

Whereas some other entities under the restaurants industry are still a bit expensive, Wendys may offer a potential longer-term growth to institutional investors. To conclude, as of the 4th of August 2020, our analysis shows that Wendys moves indifferently to market moves. The company is overvalued and projects below average chance of financial distress for the next 2 years. Our final 30 days Buy-Hold-Sell recommendation on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Wendys Company. Please refer to our Terms of Use for any information regarding our disclosure principles.

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