Quick service restaurant company Wendy's (WEN 16.59, +0.89, +5.7%) has been actively engaged in a turnaround process that has included restaurant remodeling and transiting its business from a company-owned model to more of a franchise/franchisee model.
For the most part, investors have liked what they have seen from Wendy's. It hasn't always been a love-fest, but considering shares of WEN have increased nearly 300% from their 2012 lows, it is evident investors have been pleased with the progress the company has been making.
One of those investors is Trian Fund Management, which is led by activist investor Nelson Peltz, who also has a seat on Wendy's Board of Directors.
The company's Board is factoring prominently in the stock's advance today, as it approved a 21% increase in the quarterly cash dividend rate from $0.07 to $0.085, marking the sixth straight year the dividend has been increased. In addition, the company was authorized to repurchase up to $175 million of the company's common stock through March 3, 2019.
Wendy's had approximately 239.5 million shares outstanding as of February 13, 2018. At the current price, then, it could effectively repurchase about 4.4% of the common shares outstanding.
The dividend and buyback news was announced after Thursday's close and it was said to be a testament to Wendy's strong cash flow generation from its sustainable and predictable business model.
Including today's gain, WEN is up 1.0% year-to-date and up 21.2% over the last 52 weeks.