It looks like WEN is going to buy something to compliment its breakfast expansion plans.
This is a very precarious time for WEN; the company needs to fix what it has before it takes on more risk.
I'm not alone!
The following is a response to the note I published this weekend.
"Interesting: I had a horrible week last week and was down 10.50%. I would agree with this man when he says "Wendy's needs to get healthy before they buy something ". But I wonder, does this also mean getting into another day part BREAKFAST? Certainly the last time we did a corporate-wide breakfast in the early 80's, a time when we and the economy were both stronger than now, and we were into the "where's the beef promo"; breakfast almost bankrupted us! In 1986 WI fired over 600 corporate folks in a bid to stay afloat. They could not meet payroll and had to actually borrow in order to do so cash flow was so bad then. And we were "healthy". What would happen today if after we roll breakfast it tanks?
This is a serious question and absolutely needs to be out there. Can you get'r done?"
If the franchise community has concerns, it's going to be hard for the investment community to embrace major changes