Thursday, March 10, 2011

Wendy's/Arby's: Business Analysis & Valuation

Recently, I initiated a position in Wendy's/Arby's (NYSE:WEN) at an average cost of $4.79. WEN is led by the activist investor Nelson Peltz. He is well known for his ability to turnaround under-performing businesses by forcing changes that help improve operations. At the price WEN was purchased, the risk/reward profile is very attractive, especially in a frothy market like today where value has become very difficult to find. The downside is close to 0% and the upside is in the range of 35-50%. 

For a full report on WEN, refer to my article at For those who are not familiar with this website, it is well known among the value investing circle as a valuable resource for tracking activity of top value managers. This article was written as my contribution for a monthly contest that they run for best value ideas.

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