If investors put a multiple of nine on 2011 Ebitda, as Peltz suggests is reasonable, the company would be valued at $5 billion. After subtracting $1 billion of net debt and dividing by 470 million shares outstanding, the stock theoretically would be worth $8.50. That is a big if. But even a multiple of seven would translate into a $6 stock.

gotta get better and double or more when the economy turns

lots of potential

The fast food chain was among the most active names on the NYSE Monday.

From a recent Mad Money show:"Wendy's is a dice roll. Why would you buy that with McDonald's (MCD) in free fall and with a great balance sheet. Under $50 I'm a buyer."

My best performing stock

Outperform - Price 5.19 on Jan. 14
by Cowen & Co.

At our seventh Annual Cowen & Co. Consumer Conference, management boosted investors' (and our) confidence in WEN's likelihood of achieving reiterated guidance of approximately $160 million [or more in] Ebitda synergies by 2011 (versus 2008) via detailed accounts of the...likely cost savings. We make no change to our 2008-2011 Ebitda estimates of $400 million/$450 million/$500 million/$550 million (conservatively assuming near-zero improvement in base business) and continue to expect shares of WEN to outperform the market by more than 20% over the next 12 months. We view WEN shares as attractively valued; they are trading at a 2009 EV/Ebitda multiple of 7 times versus ...peers' 7.8 times, despite significantly faster three-year Ebitda growth (of an estimated 10%-plus versus peers' estimated 6%-plus). Market cap: $2.4 billion.

Mad About Options: Mining Alcoa: The Mad About Options crew reviews Jim Cramer's recent bullish comments about Alcoa and offers options strategies for traders and investors. Also hear options ideas for Packaging Corp. of America and Wendy's/Arby's group.
Click here to watch the video.

From a recent Mad Money show:"I'm not a big fan longer term for Wendy's. If you want to be in fast food, you need McDonald's (MCD) or Yum! Brands (YUM)."

Triarc (TRY) Chairman Nelson Peltz intends to raise his Wendy's holdings. Peltz and affiliated funds own 10.6 million shares (36.4%) of Class A and 13.8 million (21.55%) of Class B. Peltz owns 4.6 million common shares (5.3%).

not too much happening

Unsure leadership

growth

static

Their earnings report is going to miss.