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,

Wendy's recent $18.50 price could rise by $1.50 and go to $20.00 by mid- May 2020.

WEN Dividends

Wendy's most recently declared quarterly dividend was $0.10 declared May 8th and payable, June 17th.

A $0.10 Q dividend equates to an annual payout of $0.40 for a yield of 2.16% at yesterday's $18.50 closing price.

Gains For WEN?

Adding a $0.40 annual estimated dividend to my $1.50 estimate of Wendy's price upside shows a $2.90 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we pay a little under $1,000.00 today at the $18.50 recent stock price would buy us 54 The Wendy's Co shares.

A $10 broker fee paid half at purchase and half at sale will cost us $0.19 per share.

Subtract that $0.19 brokerage cost from the estimated $2.90 gross annual gain leaves a net gain of $2.71 X 54 shares = $146.34 or a 14.65% net gain on a $999.00 investment.

Therefore, The Wendy's Co whose trading ticker symbol is WEN now shows a possible net gain of 14.65% including a 2.16% dividend yield.

Twenty-four brokers cover The Wendy's Co stock:

Eleven say "buy" WEN.

Four say WEN will "outperform".

Nine say "hold" WEN.

The consensus score is 1.9 or "outperform".

Therefore, you can look at The Wendy's Co and see it has made money, is making money, and could net a 14.65% gain including a 2.16% dividend yield. It could be more, it could be less.   

The above speculation is based on past year performance. The actual results remain to be seen to determine if The Wendy's Co is worth your time and money.