Though 11.5x trailing EBITDA (per our table below) is reasonable for a well-established (soon to be) pure franchisor, the number of Wendy's operating units are down over the last several years, and franchisees are remodeling rather than building new locations in the current challenging environment. The company is already leveraged so major additional debt to repurchase stock or support franchisees in one way or another, even at today's low rates, is unlikely. With earnings per share progress in the range of 10% annually, we think WEN is more than adequately valued right now. We don't expect any substantial upside surprise, unless it is a result of financial engineering rather than fundamentals at the store level. We obviously would not be trading WEN from the long side going into this earnings report.