Is Wendy’s a Good Investment?

PHOTO CREDIT: Wendy’s

OVERVIEW

The Wendy’s Company is a company based in the United States. The company operates Wendy’s restaurant chains around the world. The company owns 512 properties and leases over 1200 other properties. They operate over 6700 restaurants. In these restaurants, the company serves classic American food like burgers and various other breakfast/lunch/dinner items. The company was founded in 1969.

Why You Should?

  1. Wendy’s is a great reopening play. Due to the COVID-19 pandemic, the company has had to shut down or limit its operations at all of its locations. This has hurt the company’s financial results during these times. However, the company is recovering quite quickly and are nearly back to their normal levels. This will benefit investors in the company as well.

Why You Should Not?

  1. Wendy’s faces tough competition from many restaurants around the world. Aside from small business competition, the company faces competition from companies like McDonald’s, Dominos, Papa John’s, and many others. This competition might hurt the company and might also hurt investors in the future.
PHOTO CREDIT: Yahoo Finance

MY OPINION

In my opinion, I think that Wendy’s is a decent investment due to its good reopening position, its opportunity for growth, the ways that it has adapted to this pandemic, and the hopes for more COVID-19 stimulus. However, tough competition, impacts from the COVID-19 pandemic, and lackluster revenues and profits might hurt the company in the future.