Martin,
Don't know if you saw the complete report. From Yahoo, it was that
Jeffries & Co lowered its rating on Wendy's International inc to accumulate from buy, because of share valuation.
So, the shares had reached the analyst's "near-term price target."
He also said "Wendy's continues to benefit from the ongoing consolidation within the quick-serve category while strengthening its position in the sector with new products and a continued emphasis on execution.''
To me, this is a pretty weak downgrading. First, it is a short-term, the-price-has-got-ahead-of-itself type downgrade. At another stock I own, COSTCO, there have been at least two of these since Jan. 97, one at the low 20's, the other at the high 20's. It's about due for another one now that it's at the mid-30's. The other "weakness" to the downgrading was the comment of gaining in market share, at least that's the way I read his comments.
Considering that it was base building at 18-22 for the last two years, I don't think a break out to 26 is irrational exubriance. So, far it looks like there was no dramatic impact.
Eat hearty.
Mat
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