Is Arby's a flawed concept? You might think so looking over this year's losers on Microsoft's (NASDAQ:MSFT) MSN.com. After all, there's parent company Triarc (NYSE:TRY) tagged with a better than 60% year-to-date slide.
Ouch! Maybe it's best to handle this one with the company's signature glove mascot.
Hold up a sec. We've not much of a beef with the fundamentals here. Back in December, the company acquired its second-largest franchisee. That's not a bad move. Even if it means an end to the cozy life of a franchisor collecting royalties exclusively, Triarc is now better positioned for a revival in fast casual dining, owning 238 of the concept's 3,400 outlets.
And lackluster comps -- they're just collateral damage from the burger joints' dollar-menu pricing wars. And guess what? The McDonald's (NYSE:MCD), Burger Kings, and Wendy's (NYSE:WEN) of the fast-food space have quietly backed off their discounting ways.
So why has Triarc been slammed so hard? It hasn't. Last month the company went through a complicated distribution process in which shareholders were given two shares of Triarc Class B (NYSE:TRY.B) for every original share. The new stock pays a higher dividend but with reduced voting power.
So while the stock's returns should be split-adjusted and showing a gain -- with any Triarc investor well in black for 2003 -- the tricky split has most financial sites (yes, including ours) showing incorrect 52-week highs and lows.
That's fine. Fools know that due diligence doesn't end with a first impression. Dig deep and the beef is there.
The Internet has made stock research a breeze in many ways, but it's always good to have someone else to check your math and bounce ideas your way. That's why many investors -- new and old -- will appreciate TMF Money Advisor.
