Quick-service hamburger restaurateur
The Wendy's Company
) has been gaining traction since the beginning of the year
primarily buoyed by its value menu program named 'Right Price,
Right Size Menu'. Currently, it offers five types of
cheeseburgers, three varieties of chicken wraps and many more
options at a price range of 99 cents-$1.99. Wendy's continues to
gain market share, driven by price value proposition and premium
limited period offerings.
The restaurateur recently added two spicy food items in its
Right Price Right Size Menu options. These two limited-time
products - Spicy Chipotle Crispy Chicken Sandwich and Spicy
Chipotle Jr. Cheeseburger - have been priced at only 99
The research firm Technomic, in its 2013 Flavor Consumer Trend
Report, stated that nearly 54% of the domestic consumers like
spicy sauces more than the less spicy products. The new items
have been launched to tap this demand for spicy foods.
The two value items, made with juicy beef or a crispy chicken
fillet topped with melted Pepper Jack Cheese, zesty jalapenos and
a spicy sauce, are available throughout the U.S.
In order to improve its brand recognition, the restaurateur
has undertaken a series of initiatives such as unit expansion,
re-imaging, closing underperforming units and several other
growth initiatives. The new menu addition is also part of
Wendy's' brand building efforts. We remain optimistic on the
company's solid menu pipeline and marketing initiatives planned
for the period ahead.
Innovation and introducing new items have become a trend among
all the restaurateurs. In mid December,
Jack in the Box Inc.
) added two new items to its platter. These two limited-time
products - Fajita Ranch Melt & Jalapeño BBQ Burger - have
especially been launched to tap the increasing demand in this
Other Stocks to Consider
Wendy's presently has a short-term Zacks Rank #2 (Buy). Some
better-ranked stocks in the restaurant industry include
Buffalo Wild Wings Inc.
Cracker Barrel Old Country Store, Inc.
). Both the stocks carry the same Zacks Rank as Wendy's.
BUFFALO WLD WNG (BWLD): Free Stock Analysis
CRACKER BARREL (CBRL): Free Stock Analysis
JACK IN THE BOX (JACK): Free Stock Analysis
WENDYS CO/THE (WEN): Free Stock Analysis
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