Why You Would Need To Relook The Wendy’s Co (NASDAQ:WEN)

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Dallas, Texas 01/01/2014 (FINANCIALSTRENDS) – The Wendy’s Co (NASDAQ:WEN), the burger chain, continues to re-invent itself with its System Optimization strategy.  The plan has included exiting outlets, numbering over 282.  The company has since sold 30 odd restaurants in Austin, 19 in Sacramento to respective local-franchisees.

The stock performance has seen above average performance and maintained upward trend, half-decade of increasing quarterly dividend and good guidance for the fourth quarter. The Wendy’s Co (NASDAQ:WEN), has persisted with a pricing strategy of high and low menu. This has been in direct competition with what McDonald has already been doing. Except that in Wendy’s case the high-priced menu products bring in brisk business.

The Wendy’s Co (NASDAQ:WEN), success with the pricing has definitely won the backing of more than six analysts who recommend a buy over, 11 analysts who propose Hold and one analyst who suggests a sell. The strategy has ensured that its same-store sales are a buzz, with regular loyal customers continuing to bring in volume sales with value-based products, while the premium food products drive in those looking for food adventure and exploration

In the first week of December The Wendy’s Co (NASDAQ:WEN) received a thumping thumbs-up when analysts Barclays forecast in the food business, those chains that had higher number of outlets which were owned directly by them would show higher performance, in comparison to franchisee model for 2014.

As if to prove the analyst right, McDonald’s has seen poor sales, while nearly every other burger chain has been under observation – Sonic, Chipotle and Starbucks as well. Panera Bread is one other restaurant chain which is likely to underperform. The food chain sector has been under great pressure in the past month, with political overtures, from Congress Democrats to raise hourly rates for store employees. It is expected that President Obama would propose $7.25 per hour to $10.10 per hour.  The Wendy’s Co (NASDAQ:WEN) new look may well lead to optimized this year!

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