Wendys Co (NASDAQ:WEN) recovered most of its losses incurred in the previous session as it bounced sharply to end the last trading session with a gain of 2.08%. The volume of 3.2 million for the day was almost identical with the daily average of 3.3 million, indicating the corrective nature of the price action at this point of time. For the last few days, the price is oscillating between $8.50 and $9.50, creating a short term range in the process. An upside break of this range can’t be ruled out but even that bounce can be expected to be short-lived.
Wendys Co (NASDAQ:WEN) took a major step in the second week of October when the company introduced its new four for $4* Meal showcasing a Jr. Bacon Cheeseburger, fries, a drink* and chicken nuggets. The company attracted the attention of customers with a quality meal at a much affordable price.
Kurt Kane, the Chief Concept and Marketing Officer at Wendys, said that they believe that all people deserve an appetizing lunch immaterial of the costs. It is the reason why the company created the affordable meal, which comes in the list of best lunch for under $5 in the U.S.
Only at Wendys customers can get the Jr. Bacon Cheeseburger, made with never-frozen, fresh 100% beef** and thick-cut fresh-cooked Applewood Smoked Bacon. Moreover, this classic cheeseburger is complemented with natural cut sea salt fries, drink and white-meat chicken nuggets.
During a test market, users shared their expectations on social media, with one consumer calling the new four for $4 Meal as the “The best invention since the Sun!” Kane said that such passion depicts how excited consumers are about getting incredible value from company. Available for a limited period at participating restaurants, customer response will determine the duration of new meal.
Analyst Jake Bartlett stated that Wendys is reaching an inflection point where the company’s same-store sales are expected to outperform and new segment growth to reaccelerate. Its increased focus on fresh and high quality food and reimaging efforts are expected to boost same-store sales by a projected 100 basis points per year through 2020.
Bartlett mentioned that they think Wendys present and past measures to fortify its brand positioning will reap benefits as its reimaging process advances. He added that the tipping point is being reached and the company can record nearly 3% growth in same-store sales in the coming years.