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Wendy's Offers More Spicy Foods - Analyst Blog

By: Zacks.com
Posted: 12/26/2013 5:50:00 PM
Referenced Stocks: BWLD;CBRL;JACK;WEN

Quick-service hamburger restaurateur The Wendy's Company ( WEN ) 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 cents.

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. ( JACK ) added two new items to its platter. These two limited-time products - Fajita Ranch Melt & JalapeƱo BBQ Burger - have especially been launched to tap the increasing demand in this holiday season.

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. ( BWLD ) and Cracker Barrel Old Country Store, Inc. ( CBRL ). Both the stocks carry the same Zacks Rank as Wendy's.



BUFFALO WLD WNG (BWLD): Free Stock Analysis Report

CRACKER BARREL (CBRL): Free Stock Analysis Report

JACK IN THE BOX (JACK): Free Stock Analysis Report

WENDYS CO/THE (WEN): Free Stock Analysis Report

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