Ever since we upgraded to Kendo release 2016.3.1118, the context menu wrapping is broken, and is still broken with latest version.
It seems the context menu will wrap item names that's not very long, like "Compare Forecast", like "Save As Excel". The width of context menu is always just slightly narrower than the longest item so it must wrap. Please see the plunk example: https://plnkr.co/edit/EyVABxhVKmgNMxf3ERkk?p=preview