Barclays Maintains an 'Overweight' on Wendy's (WEN); CEO Steps Down; New Leader Impressive

Barclays maintains an 'Overweight' on Wendy's (NYSE: WEN) price target of $6.00.

Barclays analyst says, "WEN announced the departure of President and CEO Roland Smith, to be replaced by Emil Brolick, most recently in management at Yum Brands (NYSE: YUM). While Smith played an integral role in the turnaround of Wendy's / Arby's, Brolick is a highly-regarded industry veteran, having served at YUM since 2000 and at Wendy's for the 12 years prior. Brolick was impressive while at Wendy's, working with founder Thomas on menu innovation, which helped support Wendy's growth in the 1990s."

"With turnaround strategies in place and comps improving, we believe WEN's
average long-term EBITDA growth will exceed QSR peers, benefiting from
fundamental growth in a more normalized operating environment. While 2011 is a "transition year" with pro-forma EBITDA growth expected flat, we're buyers on the anticipated growth. WEN is currently at ~8x 2011 EV / EBITDA, a ~10% discount to QSR peers."

For more ratings news on Wendy's click here and for the rating history of Wendy's click here.

Shares of Wendy's closed at $4.95 yesterday.

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