Wendy's (WEN) is Just Hitting Its Stride, Thinks Barron's

February 11, 2013 8:45 AM EST
Wendy's (Nasdaq: WEN) stock is trading sharply higher in pre-open trading Monday following a bullish Barron's article highlighting the fast food company's revamped menu and low valuation relative to peers.

The compelling combination will help the stock price take flight and it could rise by more than 40 percent, say analysts. Wendy's currently trades at 8.4x EBITDA, while peers trade at 10x. At 10x 2014 EBITDA, shares of WEN would be worth $7.20, noted the article.

In the past year and a half, the company has revamped the menu and refocused marketing efforts. As a result, shares began to recover late last year and there appears to be more room to run.

Shares of Wendy's last traded at $5.20, up 3.8 percent.

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