$$$ KARAM’S STOCK TIP OF THE MONTH $$$

This month’s stock pick is Wendy’s International, the third largest hamburger chain behind McDonald’s and Burger King. Wendy’s has almost 6,700 Old Fashioned Hamburger restaurants in the U.S and in 20 other countries. The Wendy’s chain offers made-to-order burgers and fries as well as such alternative menu items as baked potatoes, chili, and salads. Close to 1,5000 restaurants are owned by the company, while the rest are franchised.

Wendy’s which is based in Dublin, Ohio, reported 2006 sales at nearly 2.5 billion dollars, net income was 94 million dollars. As of 4/25/07, Wendy’s International was trading at $32.68 a share. I recommend this stock as a solid investment. Wendy’s is listed on the (NYSE) New York Stock Exchange, its stock symbol is (WEN). Wendy’s is described as a value stock due to its strong cash flows, product brands, and vast real estate holdings. More importantly, the company is considering putting itself up for sale to enhance shareholder value. A sale of Wendy’s hamburger chain could be worth as much as $4 billion on the open market.

Many investment analysts on wall street have said that the Wendy’s brand would be a perfect fit for private equity firms, which typically buy companies, improve operations, then turn the companies around financially to later sell at a profit. I have personally tracked this stock when it was trading at $5 per share several years ago. Wendy’s is definitely a stock that every investor should have in their investment portfolio!

As always, past performance does not guarantee future performance. This stock tip column is presented by Mr. Richard D. Karam, a business teacher in the Business and Finance Academy and an alumnus of the Martin J. Whitman School of Management at Syracuse University.