NEW YORK (TheStreet) -- Wendy's (WEN) - Get Report stock is declining 4.09% to $9.27 on heavy trading volume on Monday afternoon after the Dublin, OH-based fast-food chain announced plans to enter the Brazilian market next month even though the country faces a steep recession.
The first two locations will open in Sao Paulo via a joint venture called Wendy's Brazil between Infinity Services and Starboard, a U.S. franchisee and Wendy's subsidiary.
"Brazil is one of the key global markets where we see considerable potential, and where we are investing additional energy and resources as part of our 'narrow and deep' international strategy," Wendy's COO Bob Wright said in a statement.
The market for quick service restaurants in Brazil was valued at $25 billion last year with McDonald's(MCD) dominating the market with an 8.7% share, according to data from Euromonitor, Reuters reports.
So far today, 3.89 million shares of Wendy's have been traded, compared with its average daily volume of 3.58 million shares.
Separately, Wendy's has a "buy" rating and a letter grade of B at TheStreet Ratings because of the company's reasonable valuation levels, good cash flow from operations, expanding profit margins, notable return on equity and impressive record of earnings per share growth.
You can view the full analysis from the report here: WEN
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.