BU439ers,

Recently, Wendy’s was purchased – 2500 shares for the BU439 Portfolio(@27.29). Wendy’s owns three restaurant concepts – the Wendy’s hamburger chain of over 6000 restaurants, Tim Hortons baked goods and coffee concept located primarily in Canada with over 2000 restaurants, and Baja Fresh, a Mexican Restaurant with 210 locations. The stock peaked at about $40 a share in 2002 and declined by about one-third as the company has experienced slower growth due to a general consumer pull back and increased competition from McDonalds. These appear to be more temporary factors rather than permanent while the share price (a 13X earnings multiple versus a 17X historic average) implies a more negative long-term outlook than what I believe. Also, the Tim Horton restaurants (about one-third of profits) dominate the coffee market in Canada and continues to expand nicely. Finally, the balance sheet is good and cash flow is strong. Should you have any thoughts or questions let me know.

~Tom