Yum! Brands, Inc. (YUM), McDonald’s Corporation (MCD): Wait to Bet on this Food Company

On the other hand, The Wendy’s Company (NASDAQ:WEN) president recently announced that the company has plans of rebranding itself, which includes developing new restaurants, a new logo, new products and bold new packaging.

The company has a goal of selling 425 company-operated restaurants to the franchise operators by the end of the second quarter 2014. As part of this plan, The Wendy’s Company (NASDAQ:WEN) has just sold 30 restaurants in St. Louis to franchise operators. Wendy’s plans of changing its structure to the franchise system will help the company reduce its operating costs, generating more profits in the future.

Since its launch in early July, The Wendy’s Company (NASDAQ:WEN) new Pretzel Bacon Cheeseburger has seen a lot of interest among its customers, especially young teenagers. Many experts believe that the pretzel burger will be a major driving force behind Wendy’s performance in the next quarter. As a result, the company has given a strong outlook for the rest of the year.

The Wendy’s Company (NASDAQ:WEN) expect to grow its same-store sales by 2%-3% by the end of this year. Furthermore, the company has also raised its quarterly dividend by 25%.

The bottom line is that The Wendy’s Company (NASDAQ:WEN) new innovative products, along with its new business structure, project a much better future for the company. This makes it a worthwhile investment.

Conclusion
As the avian flu is expected to dampen Yum! Brands, Inc. (NYSE:YUM)’s sales in 2013, the company doesn’t look to be a great short-term investment. However, investors looking for long-term gains should consider buying it. But, as Yum! hasn’t bottomed out as yet, it isn’t the best time to buy it.

The article Wait to Bet on this Food Company originally appeared on Fool.com.

Waqar Saif has no position in any stocks mentioned. The Motley Fool recommends McDonald’s. The Motley Fool owns shares of McDonald’s. 

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