r/wallstreetbets
I went to WEN today for the first time in years
Author observed busy traffic at two Wendy's stores, predicting WEN will beat upcoming earnings due to strong demand and retail buying.
- High foot and drive-thru traffic observed at two different locations during lunch hours indicates robust consumer demand.
- Clean stores, busy workers, and good food quality suggest strong operational execution and positive customer experience.
- Anticipated retail buying pressure from Reddit users could act as a catalyst to drive the stock up ahead of earnings.
- The observed traffic might be artificially inflated by recent media attention rather than representing normal baseline demand.
- Drive-thru lines were so long at one location that a potential customer left, indicating possible operational bottlenecks.
I did something I've never really done - research. I downloaded the app (currently ranked 22nd in food and drink in the App Store and created an account.
I decided to check out a couple of Wendy's within a few miles of me and see if it is trash or treasure. First location is in a great location - near a bunch of businesses with good signage. I arrived at 11:41am and walked inside for a frosty. The place was clean, workers seemed busy, and the frosty was good (chocolate). I counted 4 people inside. I got a frosty and went back to my car to count the amount of vehicles going into the drive thru and walking inside. I left at 12:23pm and counted 35 cars with 18 people walking inside. One car left because the line was too long at one point. I should also note that I could not see if people parked on the other side and walked in but my guess would be. a few people at a minimum.
I then went to another location and arrived at 12:35pm. This location is more residential and not as nice. The building next to it used to be a restaurant but closed down years ago and it has remained vacant since. I walked in and saw 6 people sitting inside enjoying some food. I got some fries - they were hot. I went back to my car to do the same thing and count. I counted 11 vehicles for the drive thru and 2 people walked in. I left at 12:53pm.
https://preview.redd.it/hdri7j1hwn9h1.jpg?width=480&format=pjpg&auto=webp&s=8e637b520f32cd3de42b86178702e774b28e599b
Overall both places seemed fairly busy, but I have no way of telling if this is normal or increased traffic since Wendy's has been getting some media attention. I do however believe that they will beat next earnings. I think a bunch of regards from reddit are going to buy what they invest in.
Some things I'd change about Wendy's:
- Bring back the yellow cups - nostalgia is powerful and should be used.
- Their app is pretty garbage. Certain things wouldn't load and compared to the McDonalds and BK app - Wendy's doesn't really have meal deals listed.
- Do something crazy like partner with RH and give extra benefits to shareholders.
Things I like:
- The dividend - about 7%
- The fact that the land they have is valued at around 900M. Not bad for a 1.5B stock.
- The turnaround story - former CEO of Potbelly's which was acquired by Racetrack.
- Near 52 week lows still.
Position:
I'm basically all in, just have a little cash leftover that I will use to buy more.
Regards.