MCD - With Too Much Leverage Wendy's Is A Short Sale
Like many other stocks, Wendy’s (WEN) is over-priced because of massive share repurchase programs over the last few years have artificially inflated the stock price. The company has repurchased more than 50% of their outstanding shares for $2.415 billion. Because I am expecting their new breakfast plan to fail, the stock price could plunge by this time next year. With an unjustifiable high P/E of 35 on trailing 12 months earnings, WEN is a short sale with a 13 month target price of 14. A report last week by Bloomberg that one the