All Of You Belong At Wendy's, And Here Is Why I'm Bullish. ($WEN) (Reposted with Position Screenshots)
Everyone likes to make jokes at the expense of some people who are terrible at trading options here. Telling them, "See ya at Wendy's!" (For reasons we all know), but what if, that isn't a bad idea?
We all have a Wendy's somewhere in our town, and obviously people are still buying burgers, nuggets, the works, as shown in their sales.
[Sales](https://preview.redd.it/8qncms9s4gwe1.png?width=340&format=png&auto=webp&s=b52b2ad8e9483508434f792314cf52046d821f85)
The share price is at a comfy low P/E of 13, with a lower Forward P/E of 11, which means you're paying close to what the stock is worth as compared to when you look at big tech companies with inflate P/E ratios (Looking at you PLTR and AMD).
Wendy's currently pays a quarterly dividend of $0.25 per share, coming to Dividend yield TTM of 8.01%, which beats the yield of many REITs, and not to mention, treasuries (Why buy treasuries when you can buy Wendy's?)
Next on the menu (Get it?) We have Institutional ownership which makes up 88% of the owned shares. Trian Fund Management and Vanguard are big names with a huge stake in this old American company, it's not likely they are going to cut their stake between considering the dividend yield and their own sunk cost into investing in it.
[Ownership](https://preview.redd.it/s3ie22uv4gwe1.png?width=293&format=png&auto=webp&s=ddf01a25de881a2e9b0e679c84ef3610c613d18f)
Lastly, the special sauce. I went to the effort of drawing these lines so you don't have to. I expect to see $WEN between $16-$24 per share within the next 3 years, maintaining their current dividend yield as well (I am expecting a 40% ROI + 8%/Year for 48% after 3 years).
[Crayons](https://preview.redd.it/zg15ko965gwe1.png?width=952&format=png&auto=webp&s=a6d7163eef48a4b80773acfdbf1b3de407d5190f)
That being said, you guys are probably thinking...BORING! Where's the moonshot? Why wait that long? Well, I got an answer for you. I personally believe I am overestimating the time it will take to see these numbers. When enough people catch on that Wendy's is a heck of a value play, it's only going to drive the share price up into a upwards snowball, at least until the yield and P/E isn't tempting enough (Like they're Dave Singles).
Anyways, that is my DD for now on $WEN. Opened a position of 4 $14 Calls for June, and bought 36 shares. Going to invest more as I obtain more capital inflow, targeting making this at least 5% of my portfolio within the next 6 months.
POSITION SCREENSHOTS:
[Shares](https://preview.redd.it/rbugvgjz4gwe1.jpg?width=1080&format=pjpg&auto=webp&s=bc6f409643194991a2886e46280bca3da0490ae1)
[Options](https://preview.redd.it/6vf3nn815gwe1.jpg?width=1080&format=pjpg&auto=webp&s=92c9178cddb77640d2523d37d4272991382110b4)
Regards,
Nalon McCallough