It's been a tough year for Wendy's (NYSE: WEN). The company has struggled to grow same-store sales, and then in June, the company garnered a mention on TheStreet.com's weekly list of the "Five Dumbest Things on Wall Street," for "announcing once a month that it's up for sale."
Now, with the stock touching a 52-week low on the year's last day of trading, Lehman Brothers analyst Jeffrey Bernstein is criticizing the company for failing to turn itself around in spite of an economic environment that should be conducive to the industry, and added that the company's earnings and sales targets may be too "aggressive." Bernstein also said that investors are frustrated with the lack of an outcome so far to the company's exploration of strategic alternatives.
Shares of Wendy's have fallen precipitously since the original announcement that the company was exploring a possible sale. Given that a cheaper share price should make the company a less expensive acquisition target, you would think that the offers would be rolling in.
Maybe the company is taking forever to mull its alternatives because there are just so many bids to choose from that it just can't pick one. However, my experience has been that a long period of silence after a big announcement that a company is up for sale is most often indicative of a lack of offers.
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Reader Comments (Page 1 of 1)
1-30-2008 @ 3:42PM
catherine a curtin said...
for wendy's the man with red pig tails not good...a while back i was saying make a wendy doll i have grandaughter with pretty red hair her 4 month old twins have red hair....do the dolls and a boy toy...it will bring in the business...my red haired kids are really pretty. kay cutin 2800 privada dr lady lake fl 32162. in the villages.grandkids will be on spring break iam blessed blonde black brown and red heads.....
1-30-2008 @ 10:38PM
kay said...
it is so inportant to have clean clean places and people were gloves....and no grease....
1-30-2008 @ 10:48PM
kay said...
really i think gloves when handling food....less grease and a wendy doll for kids would go over big....then yes a boat for a boy....the happy meals and toys get the people buying.....and clean store's