Dallas, Texas 10/02/2013 (Financialstrend) – On September 24, Wendy’s International, Inc. which is a 100% owned subsidiary of The Wendy’s Co (NASDAQ:WEN), entered into agreement to borrow additional “Term A” Loans which will have a ceiling of up to $225 million. This line of credit will be open for Wendy’s still October 29, 2013. The company announced that it will use these proceeds in tandem with the cash it has at hand to retire in advance its $225 million worth senior notes which will mature in 2014. These notes bear an interest component of 6.2%.
The stock of Wendy’s has seen a appreciation of close to 5.8% since then. As of close of business on October 1, the share price was $8.82 per share. It translates to a close to 4% increase over its previous day close of $8.48. The fast food restaurant chain has seen a 16.6% increase in its valuation over the past 30 days and a big 50% over the past 90 days. Investors who bought Wendy’s shares last year at $4.23 have seen a 100% appreciation at current valuations. At October 1 valuation, the stock has created new 52 week bench mark. It is up 0.8% above its previous 52 week highest price valuation.
This rally in the stock is quite in contrast to performance from other bigger players like McDonald which has seen its stock consistently shrink in market value over the past few weeks. Wendy’s has a market cap of $3.4 billion with close to $2.52 billion in sales over a trailing 12 month period. It generated $13.1 million in net income. This was after a relatively healthy $0.2 dividend payout to its share holders over the past 12 months. The dividend yield of 2.27% compares really well with dividends paid out by its peers. With an employee strength of 44,000 it was able to record a earnings per share increase of 400% over its previous quarter.
