E Daily Stock Pick: The Wendy's Co

This week, I'm looking for the fifth consumer cyclical representative of five for my Ivy portfolio.

The consumer cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Gambling, Leisure, Lodging, Packaging, Personal Services, Shoes, Restaurants, Rubber, Plastics, Textiles, and all such consumer aimed enterprises.

Today I'm reviewing a mid-cap restaurant company named The Wendy's Co. Its trading ticker symbol is WEN.

The Wendy's Co is a quick-service restaurants franchisor, operating restaurants under the brand name Wendy's. Wendy's are known for its hamburger sandwiches in the United States and Canada. Other than sandwiches, their menu also offers chicken nuggets, chili, French fries, baked potatoes, freshly prepared salads, soft drinks, Frosty desserts, and kids' meals. Wendy's are also present in various other foreign countries and U.S. territories. Revenues are generated from sales at own restaurants as well as from franchise-related royalties, rents, and fees.

As of December 30, 2018, its restaurant system included 6,711 franchise restaurants, which comprise 353 owned and operated restaurants worldwide. The company was formerly known as Wendy's/Arby's Group, Inc. and changed its name to The Wendy's Company in July 2011.

The Wendy's Company was founded in 1969 and is headquartered in Dublin, Ohio.

I use three key data points to gauge the value of any dividend equity-like The Wendy's Co:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

WEN Price

Wendy's price per share closed at $18.50 yesterday. A year ago its price was $16.53. Price rose $1.97  or almost 12% in the past year.

Assuming Wendy's stock trades in the range of 15.00 to $22.00 this year,

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