In consistent with its aim to reinvigorate the brand,
The Wendy's Co.
(
WEN
) recently revamped its logo. This new logo replaces the old with a
change in backdrop, frames, as well as the words like
'old-fashioned hamburgers.' The mascot too has undergone a few
changes. This refreshed logo will be put into effect on packaging,
advertising, crew uniforms, menuboards and websites in March 2013.
This Dublin, Ohio-based fast food company has renewed its logo for
the first time since 1983 in association with Tesser, an
award-winning design firm based in San Francisco. A corporate logo
signifies a company's nature of business and thus, is an integral
part of the brand image. Currently, Wendy's is seeking to
reposition its brand and the new logo depicts its attempts to step
outside the territory of mere hamburgers and venture into a larger
arena of various quick service offerings.
Wendy's is not the only company to modify its logo in the
restaurant sector. Another sector behemoth
Starbucks Corp.
(
SBUX
) also resorted to several logo modifications to underline its
growth strategy. The latest took place in January 2011.
Since the year 2011, Wendy's has been on a transition mode. The
company generated positive transactions in 2011, for the first time
since 2002. The measures facilitating the transition include the
divesture of Arby's restaurants, expansion in overseas markets,
menu innovations, exploring high-quality coffee offering namely
Redhead Roasters, stress on customer service by launching a mobile
application, focus on overall marketing, and last but not the least
massive remodeling of its existing stores.
Wendy's does not seem to miss out on any opportunity to relate to
customers. All its refurbished restaurants will get an upscale
setting featuring fireplaces, flat-screen TVs, digital menu board
and lounge. Wendy's benefited substantially from the re-imaging
program undertaken in 2011 with an average sales increase of
25%.
Wendy's also strives to increase the late-night business in
which the company holds a strong market share, in order to attain
optimum restaurant utilization. The company also has plans to cater
to the growing Hispanic market.
Although, the five successive quarters of positive same-store sales
at company-operated restaurants suggest that Wendy's repositioning
efforts are on track, yet the entire turnover process still needs
time before it fully pays off. Moreover, an uncertain economy,
faltering consumer confidence, high commodity costs as well as
heightened competition remain an overhang.
Wendy's which competes with the likes of
McDonald's Corporation
(
MCD
) currently carries a Zacks #4 Rank, which translates into a
short-term Sell rating. We maintain our long-term Neutral
recommendation on the stock.
MCDONALDS CORP (MCD): Free Stock Analysis
Report
STARBUCKS CORP (SBUX): Free Stock Analysis
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WENDYS CO/THE (WEN): Free Stock Analysis Report
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