Seeking Alpha

A performance index tracked by the National Restaurant Association fell to its lowest level in...

A performance index tracked by the National Restaurant Association fell to its lowest level in nine months, with a reading of 100.2 for July down 1.1% M/M. Sagging optimism over future business dampened the effect of brisk same-store sales, as only 22% of restaurant operators expect economic conditions to improve in the next six months. The outlook for capital spending in the sector remained relatively stable.
Comments (5)
  • Herrbal1
    , contributor
    Comment (1) | Send Message
     
    I'm a Small business owner of a manufacturing and distributing company that deals in sustainable energy products, I also am the COO of a Solar Thermal Manufacturing Company.

     

    I was approached by a brokerage company wanting me to buy into WEN. I have several doubts and wanted to get some opinions prior. Everything that I have read thus far seems t weigh more on the negative about Wendy's and its future.

     

    The broker told me that he rides t shirt tails of some high dollar investors and recently one of those multi-bucked CEO purchased a substantial amount of shares of WEN.

     

    Now I'll be completely honest (and that is the way we all should be), but I'm definitely not as stock market savvy as I wish I could be.

     

    I have several safe funds and although I'm still in my lower forties, I don't believe in throwing money away on an uncertain thing.

     

    Please someone give me your advice of WEN.
    31 Aug 2012, 05:40 PM Reply Like
  • John N. Heil
    , contributor
    Comments (72) | Send Message
     
    Far better to stick with stocks that offer good growth and great value. Apple comes to mind. It is very fairly priced, pays a nice dividend, and the company is a leader in high tech. Whereas WEN is in an extremely competitive business, with ease of entry, and bucking a major headwind of higher food costs. Steer clear in my opinion. Sounds to me you are a dividend kind of investor and you will not regret it longer term.
    31 Aug 2012, 10:30 PM Reply Like
  • jldpc
    , contributor
    Comments (5) | Send Message
     
    The dumbest thing you can do is to buy on "tips." No matter who gives them to you, and no matter what or why they say something - Do your own research!! Retail is always a fad business - up one year down the next - clothes, food, shoes, styles, etc. Whole Food Markets and Hain are popular nowadays. But for how long? Remember Crispy Creme? Radio Shack? At your age, buy deep in the money LEAPS calls - about 90 delta - or sell Puts at least 20-30% below market - on a couple of trends that you believe might payoff over 24 months. Both strategies allow you to "speculate" on a trend that you believe in. And in general - go for good size companies where management is respected and admired.
    1 Sep 2012, 12:37 PM Reply Like
  • heavydutytruck1
    , contributor
    Comments (14) | Send Message
     
    it would be better to get mcd,or bwld as the fundamentals are a lot better.having said that , the resturant bisness is going sideways and has a hold on most of it.do more checking first before you spend good money
    1 Sep 2012, 03:14 PM Reply Like
  • Siestadoc
    , contributor
    Comments (4) | Send Message
     
    BWLD has a good record so far but delivers very unhealthy artery clogging food and is ready to put the Calorie counts on their menus which may be detrimental to sales. A few years down the road will wonder why they paid 25x for Chicken wings and beer and saturation may be approaching . I am certainly interested in their accounting for Franchise revenues and earnings. Stay away unless you like being char-broiled in the process!!!!
    3 Sep 2012, 04:35 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|