You Know WEN It's Real (Value)

Before we begin, let's preface this by saying this isn't so much an endorsement for Wendy's stock (WEN) as it is an acknowledgement that there could possibly maybe potentially kind of sort of be some value in this stock. Closing at 5.00 to head into the weekend (and previous dipping in the low 4's earlier this month), WEN is quite simply a stock that, to put it nicely, has a lot of room to grow.

We wish the saying "there's nowhere to go but up" were true, but as you find out even with the most worthless of stocks, they can always go lower. But despite the challenges facing the fast food industry (rising costs of beef and fuel prices 'eating' at distribution budgets, among several others), we like what Wendy's has to offer, both on the menu and in the stock market.

Wendy's is gearing itself to be more health conscientious, as is the rest of the fast food industry. Steadily, they've seen improvements and even net profits that were becoming elusive, however patience is required as they continue to shift their menus, and thus, consumer attitudes.

This ain't Dave Thomas' WEN stock, that's for sure.

What really has us sort of kind of excited about Wendy's potential--aside from the fact that the stock was worth four times as much before the financial crisis took over--is the recent sale of Arby's, which allows the company to focus solely on its stock exchange namesake to turn things around. Additionally, compared to other similar stocks in the sector, it strikes us as a clear value.

For potential WEN owners, though, much patience will be required. This is no overnight fix, and the low trade volume can be discouraging. That said, WEN pays a dividend, albeit a small one, which we love for mid to long-range holds.

We'd be shocked to see this stock dip below $4 per share within the next year and see it back in double-digits within three, allowing shareholders to collect dividend payments that amount to a pat on the back while potentially doubling their investment.

It's always good to invest in companies you believe in, and if you've ever had a Wendy's burger or tried the new sea salt fries, you'd be hard-pressed not to believe in Wendy's. We do think this stock will pick up again, it's just a matter of WEN (sorry for that).