***SMALL CAP NATION***

[Lotto123]

2. Wendy's (WEN_)

This past week marks the one-year anniversary for Emil Brolcik, the new CEO of this fast-food chain.

During the past year, the proven industry veteran has taken a close look at operations and ultimately unveiled a turnaround strategy, which I wrote about here.


The market remains dubious, as shares are exactly where they were a year ago. But as I cautioned back in January, turnarounds can take several years to play out.

On a purely qualitative basis, Brolick's vision for Wendy's makes ample sense. Focus on quality ingredients, and you can separate from the fast-food pack.

Whether Brolick can execute on his plan is still an open question, but the earnings leverage in this business model makes this stock a potentially strong gainer during the next few years.