Wendy's International
(NYSE:WEN) shares continued their rise today after its new ad campaign
debuted on American Idol earlier this week. The fast food company has
been struggling to regain its advertising foothold ever since Dave
Thomas passed away in 2002. Now the company is back with a fresh new
campaign centered around their new slogan: That's right. Wendy's shares
rose the day after the campaign as many investors hoped that it would
help boost the ailing chain.
Wendy's also announced last week
that the special committee of the board that had been exploring
strategic options had retained J.P. Morgan as lead advisor and Lehman
Brothers as co-advisor. These moves suggest that the company is
beginning to seriously explore some potential extraordinary
transactions such as a sale of the company, recapitalization or special
dividend. It is also worth noting that activist investors Bill Ackman
and Nelson Peltz have been involved in pushing the company towards
unlocking value for its shareholders.
Many rumors have surfaced
regarding potential bids for the company in the past; however, nothing
has been confirmed. Investors do know, however, that the company is
actively exploring ways to unlock value while working to increase its
brand awareness through a unique new advertising campaign. The results
on both of these fronts remains to be seen, but WEN is definitely a
stock to watch in the meantime!
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