SI
SI
discoversearch

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 ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
Recommended by:
E_K_S
To: Elroy who wrote (78279)10/16/2025 11:56:18 AM
From: Sean Collett1 Recommendation  Read Replies (2) of 78457
 
RE: WEN

Hello Elroy,

I compared to their historical EV/EBITDA so in-line otherwise I would have gone lower. I did not use AI to answer this one and just leveraged where they have historically been around. Quick comparison $LOCO is around 10x, $MCD (different beast) is ~19x, $QSR is around 15x, $YUM is 18x, $CMG around 30x.

I find it hard to compare things like $BLMN or $CAKE given they are different business models. While all in F&B there is a different experience and cost that goes into running these. The true QSR space can cut labor costs in ways that the full-service experience cannot. Cut your wait staff? This equals slower table-turns and worse guest experience and impacts revenue. QSR space (e.g, WEN) don't have this problem because I can order from a self-serve kiosk or some AI drive-through window and get the same experience as what I had prior and the company saves money doing it.

$BLMN is paying $0.15/s per quarter and $WEN is paying $0.14 so yields aside what you're getting each quarter is close. Dividend yield on $BLMN is 7.95% currently and $WEN is 6.36%. Not too much of a difference given the earnings potential I see on $WEN.

Given EBITDA growth on $WEN I believe it's undervalued today and can clip the dividend and benefit from repurchase program while I wait.

Will agree to disagree I suppose :)

Happy investing,
Sean
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News