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Reuters Business Report
Barron's: Wendy's Stock to Rise
Sunday September 22, 11:06 am ET
NEW YORK (Reuters) - Restaurant operator Wendy's International Inc. (NYSE:WEN - News) may have the recipe for further stock price gains and earnings growth with a wider menu and increasing market share, business magazine Barron's said in its Sept. 23 edition.
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Shares of Wendy's have climbed 17 percent since last September, while rival McDonald's Corp. (NYSE:MCD - News), the No. 1 fast food chain, has lost about 33 percent in the same period, the newspaper said.
Wendy's has aimed to provide a family-friendly menu and was the only one of the Big Three burger shops -- McDonald's, Wendy's, and privately held Burger King -- to gain market share last year. In addition, the company plans to add 525 Wendy's to the map in 2002 and is launching its strongest marketing campaign in history, Barron's said.
At a recent price of $32, the stock trades at less than 15 times earnings estimates for 2003, which is below its historic forward price-to-earnings multiple of 16. It also has a history of buying back shares and continues to do so, the financial weekly said.
Wendy's shares have risen about 11.7 percent this year and ended Friday's session at $32.57 on the New York Stock Exchange.
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