The Wendy’s Co (WEN): Should You Buy This Stock?

Page 1 of 2

The Wendy’s Co (NASDAQ:WEN) recently announced that it would be launching a new burger sometime in 2013 that could be a major winner for the company. The new burger is a bacon cheeseburger served on a pretzel bun, aptly named the Pretzel Bacon Cheeseburger. The new sandwich has received rave reviews in a limited release. On a personal note, I have gone out of my way to try sandwiches served on pretzel rolls, and I highly doubt I am the only person that enjoys the roll.

The Wendy's Co (NASDAQ:WEN)

According to sources, when the burger was in testing, it performed among the best of any The Wendy’s Co (NASDAQ:WEN) item tested in the last 20 years. While the timing of the roll out remains unclear, one analyst expects the release to be in the third quarter. The analyst went on to state that the when the burger launches, he expects a “meaningful acceleration” in same-store sales. The new burger is not the only change at The Wendy’s Co (NASDAQ:WEN), as last year, the company had altered its decades-old logo to freshen the design.

The company also launched new ad campaigns. On the food side, The Wendy’s Co (NASDAQ:WEN) revamped the value menu to offer customers the opportunity at a full meal of value items. Recently, the company announced the release of a waffle cone paired with its signature Frosty ice cream dessert. Clearly, The Wendy’s Co (NASDAQ:WEN) has been making big strides to drive business.

Can one product really make a difference?

If you doubt the impact that one product can have on a quick-service restaurant, one just needs to look at Yum! Brands, Inc. (NYSE:YUM) and the success of the Doritos Locos Tacos offered at its Taco Bell restaurants. The Doritos Locos Tacos was merely a taco that utilized Nacho Cheese Doritos as the shell; however, the success of the product can not be understated.

Seven months after launch, Taco Bell had sold 200 million Doritos Locos Tacos. Same-store sales increased 6% in the first quarter, 13% in the second quarter, and 7% in the third quarter after the launch of the product. Same-store sales had been down 2% in the prior year. Nine months after the launch, the product accounted for about 7% of the menu mix. Taco Bell recently launched a new version of the product using a Cool Ranch Doritos shell and a third version is in the works.

The Doritos Locos Tacos had a huge impact on Taco Bell’s results and the popularity of the items remains. The Doritos Locos Tacos should continue to be a key driver for Yum! Brands, Inc. (NYSE:YUM).

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!