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Street account just reported that WEN is “is trading higher in reaction to a rumor circulating that Nelson Peltz, with the board, is considering a cash bid of $8/share for WEN.” 

On May 19, we published our sum of the parts analysis on WEN and came up with an estimated value per share of $7.81.  Please refer to the table below to see how we got there.  For reference, this sum of the parts analysis assumes continued margin expansion at Wendy’s in FY10 (though not to the same magnitude as we saw in 2009) and continued margin erosion at Arby’s. 

WEN – RUMOR MILL - wen sotp

Howard Penney

Managing Director