Jim Cramer Says “You Want to Stay Away from Wendy’s”

The Wendy’s Company (NASDAQ:WEN) is one of the stocks Jim Cramer reflected on. When a caller asked about the stock, Cramer showed a bearish sentiment as he said:

“Look, other than the fact that my wife loves Wendy’s so much, it’s just ridiculous, I’m not liking the stock. I mean, you know, they cut the dividend already. The dividend now is 5%. There’s something very wrong at Wendy’s, and the answer is you do not want to touch it. That happens to be a very tough industry, the burger industry. You want to stay away from Wendy’s.”

Jim Cramer Says "You Want to Stay Away from Wendy’s"

Jonathan Weiss/Shutterstock.com

Wendy’s (NASDAQ:WEN) operates, develops, and franchises quick-service restaurants specializing in hamburger sandwiches, while also owning and leasing real estate properties. While mentioning the company and its stock during the July 9 episode of Mad Money, Cramer said that “it’s not very comforting.” He commented:

“There are major corporate events that are being completely ignored. Classic example, the big, Wednesday shake up the other day. We came in yesterday and we saw that CEO Kirk Tanner’s leaving his job at Wendy’s, headed to Hershey. The news broke at the same time that Trump was unleashing his next volley of tariffs. Tanner leaving Wendy’s is one of the most significant moves I’ve seen lately in corporate America, yet people didn’t even bother to look at it. Big mistake.

First, it called to light how troubled Wendy’s might be. We know that they cut the dividend not that long ago, 44% slice, 25 cents down to 14 cents. Lots of people had been buying the stock because of its large dividend. Now, with Tanner out all of a sudden, we have a company with almost $2.8 billion in debt and only $2.2 billion in market capitalization. In the uber-competitive fast food market, we have to wonder what the heck is going on. But I’ll tell you, it’s not very comforting.”

While we acknowledge the risk and potential of WEN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WEN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.