Will the Wendy's Turnaround Actually Work?
"Project Fresh" is what Wendy's (NASDAQ: WEN) is officially calling its turnaround plan. Wendy's stock has been on the decline for quite some time. The company is taking aggressive action to right the ship. With earnings due on Feb. 13, investors are anxious to see if those efforts are actually working. Last quarter, global sales were down 2.6%, and adjusted earnings per share fell 4%.
The fast food chain began a downward spiral in late 2024, and it's continued to decline ever since. Over the past 12 months, Wendy's stock has fallen nearly 46%. For those who believe in the turnaround plan, Wendy's stock is currently extremely cheap. The stock is trading with a forward P/E ratio of around 9 and a price-to-sales ratio well under 1. Wendy's is hovering just above its 52-week low as of Feb. 9.
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Source Fool.com
