Is Wendy’s a Good Investment?

PHOTO CREDIT: Wendy’s

OVERVIEW

Why You Should?

  1. Wendy’s has some good growth possibilities in the future. For example, the company has continued to grow in Asia, Europe, and many other parts of the world. The company will benefit from these current and future growth possibilities. This will also benefit investors in the company.
  2. Wendy’s has performed substantially better towards the end of 2020 and the start of 2021 due to their adaptations to best serve their customers during this pandemic. For example, they have seen strong drive-through and mobile app sales as customers order ahead of time in order to limit contact with staff. This has helped the company’s recovery and will also benefit investors in the company.
  3. Under a Biden administration, there will be more hopes for large stimulus checks for the American people. This means that Wendy’s might see higher sales because their customers will have higher amounts of disposable income. This will benefit the company and will also benefit investors in the company.

Why You Should Not?

  1. The COVID-19 pandemic has hurt Wendy’s operational results. The company has had to shut down or limit operations across all of its stores as a result of this pandemic. This will only impact the company in the short to mid-term. This has also hurt investors in the company.
  2. Wendy’s has reported some lackluster revenues and profits over the past couple of financial years. This is due to higher operational costs and costs related to the COVID-19 pandemic. This might hurt the company in the future and might also hurt investors in the company. In the financial year of 2019, the company reported revenues of around 1.26 billion and profits of around 194 million. In the financial year of 2018, the company reported lower revenues of around 1.22 billion but higher profits of around 460 million.
PHOTO CREDIT: Yahoo Finance

MY OPINION

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.