Wendy’s $7K Options Position

Trump is bringing down the immigration numbers. The food service industry is reliant on immigrant labor. The reduction in the labor supply will put an upward pressure on wages, which means less lower profits. There is an iconic company that is well positioned to resist this wage inflation, because its prestige and dynamic corporate culture make it the employer of choice for members of this subreddit. With crypto going into the crapper, silver crashing and 0DTE options growing in popularity, the usually steam of marginally skilled labor flowing in the direction of Wendy's is bound to become a flood. Also, Wendy's has launched a turnaround plan – "Project Fresh". (Given that their primary product is dead cow on a bun full of preservatives, the name is probably ironic. That is how hip and cutting edge Wendy's is!). The underperforming locations it is closing represents only about 5% – 6% of its approximately 6,000 US locations. It also has approximately 1,300 location outside of the US. Despite the recent issues, they are still managing to pay a 7.5% dividend (for losers that are into that kind of thing). The management team is likely to remain stable – given that Wendy's is based in the wholesome town of Dublin, Ohio, none of the senior executives are going to be in the Epstein files. And with the affordable labor giving Wendy's a pricing advantage over competitors, and enabling it to clean bathrooms more frequently, Project Fresh may be able to turn underperforming locations into overperforming locations before the planned closures actually take place.

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