Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

The Wendy’s Co (WEN)’s Senior Vice President Bets On The Company’s Long-Term Growth

On Dec. 18th, eight insiders at The Wendy’s Co (NASDAQ:WEN) presented Form 4 filings at the U.S. Securities and Exchange Commission. However, most of them were declaring stock awards and dividend equivalent units granted to them by the company. There was, nonetheless, one insider, Scott R. Toop, Senior Vice President, General Counsel & Secretary, that actually reported an a stock acquisition on this date. He had purchased –on Dec. 16th– 10,000 shares at an average price of $8.49 per share, totaling a transaction of almost $85.000.

Toop now holds 49,500 shares from The Wendy’s Co (NASDAQ:WEN), valued at approximately $418,000. However, this looks like nothing, compared to other Board Director’s holdings. For example, Peter May, and Edward Garden – both Board Directors – hold 83 million shares each.

The Wendy's Co (NASDAQ:WEN)

But not only insiders feel bullish about this $3.3 billion (market cap) quick-service restaurant company. Hedge funds like Murray Stahl’s Horizon Asset Management and D.E. Shaw also hold big stakes in The Wendy’s Co (NASDAQ:WEN). However, both of these funds have been reducing their positions in the lately.

There is one fund, however, that stands out: Trian Partners. This fund, managed by Nelson Peltz, who is also on the company’s board, owns 83,000,245 shares, worth more than $700 million (almost 13% of its total equity portfolio).

Back to Toop, it looks The Wendy’s Co (NASDAQ:WEN)’s Senior Vice President is betting on long-term growth. Analysts expect the company to deliver average annual EPS growth rates around 22%-23% over the next five years, compared to the industry average of 15%-16%. Despite a few missteps in the past, Wendy’s now seems poised to outperform the broader restaurant industry, and provide and upside of more than 50% over 2014 (3.4x risk-reward). The acquisition also follows the sale of certain assets by the company, which resulted in an income of about $29 million.

I should also highlight that this is not Toop’s first purchase this year. Over 2013, he increased his holdings at The Wendy’s Co (NASDAQ:WEN) five times. Having started with 10,000 shares in August, he added 39,500 shares to his portfolio in less than five months.

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

Five of The Most Important Insider Buys During November

Griffon Corporation (GFF)’s CEO Buys Twice During a Week

Several Insiders Buy Magnum Hunter Resources Corp (MHR)’s Stock

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!