Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Elroy who wrote (78277)	10/16/2025 10:19:46 AM
From: Sean Collett	Read Replies (1) of 78451

Hello Elroy, I did provide my projected share price at the bottom thus justifying (in my view) the statement. << If I use a multiple range of 10-12x I have a value of WEN around $14.32-$19.99/s which gives some upside potential of 61%-125% from the $8.87/s price. WEN also projects EBITDA around $650-700M by 2028 and if we go with the low end EBITDA and assume 10-12x multiple then share price could be around $20.11-$27.02/s.>> Any valuation is subjective but if they get to $14.32/s and they trade at $8.87/s then that does seem to be attractive if they can get there within the next year or two. Again using an EV/EBITDA multiple of 10x-12x at their EBITDA targets they have growth room here making current price attractive. If you need a ratio for WEN then current P/S is on low end at 0.9 compared to historical of over 2x. Historical P/E is above ~17x and right now they're below 10x at 9.22x. Now I am not telling you what to buy and I have no interest in BLMN but WEN does have a slightly higher ROIC than BLMN with WEN @ 5.44% compared to BLMN @ 4.13%. WEN has $1.35 of FCF per share compared to BLMN of $0.45. WEN has operating margins at 16.82% compared to BLMN at 4.35%. Last year WEN had an earnings yield of 5.78% compared to BLMN which looks to have been negative (12.3%). WEN has a P/FCF of 6.58 compared to BLMN of 16.89 and WEN had prior been above 12 using P/FCF. This is from a quick screen of BLMN so if anything is off please let me know: have no investment in them so didn't break their financials down like I did with WEN. I am curious, what is your valuation of BLMN if it is hard to beat? I did provide the capital allocation plan for WEN too and hinted at how their use of AI for drive-through will reduce labor costs driving improvements into operating margins - from your post it seems BLMN has some initiates lined up too? Can you please explain what they may be? Happy investing, Sean

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next