Alpha Talon Investment Research shared a bullish thesis on The Wendy’s Company, highlighting its undervaluation compared to peers. Wendy’s stock was trading at $8.02 on February 6th, with a trailing P/E of 8.51 and forward P/E of 9.05. The company operates an asset-light model with 95% of restaurants franchised, supporting a 6% dividend yield covered nearly 2x by free cash flow. With steady same-store sales growth and a growing breakfast business, Wendy’s is positioned for reliable growth. The investment case focuses on valuation normalization and yield compression, offering 30-40% total return potential for patient investors.

Source: AT Investment Research, Yahoo Finance

Read more at Yahoo Finance: The Wendy’s Company (WEN): A Bull Case Theory