Wendy’s Intros New Salad Line – Analyst Blog

Wendy’s, a unit of Wendy’s/Arby’s Group Inc. (WEN), has recently announced a new line of premium salads, which includes Apple Pecan Chicken, BLT Cobb, Spicy Chicken Caesar and Baja. Each salad features high-quality, brand-name ingredients along with all-natural, preservative-free dressings. The new line has been test-marketed and introduced after it got a positive response from customers.

 

The four salads will replace Wendy’s Garden Sensations line during the third quarter of 2010. Wendy’s, the quick service restaurant, introduced the Garden Sensations line in 2002, which revolutionized the concept of salad. The line of four salads will start at $5.99, up from $4.99 for the existing line. Wendy’s being a leader in salads, we believe the new salad line will drive traffic and boost sales.

 

Wendy’s is also testing its breakfast menu item across the U.S. and will slowly grow its breakfast segment. Breakfast is cheap and quick compared to other meals and will drive traffic for the restaurant industry, which remains under pressure due to the economic downturn that has mauled disposable incomes. McDonald’s Corp. (MCD) and Burger King Holdings Inc. (BKC) have been serving breakfast for years, and sandwich chain Subway, owned and operated by Doctor’s Associates Inc., now serve it, too.

 

Wendy’s/Arby’s Group is one of the leading quick-service restaurant companies. The company was formed through the merger of Triarc, the franchisor of the Arby’s restaurant chain, and Wendy’s, the owner-operator-franchisor of the eponymous fast food chain. Wendy’s and Arby’s continue to operate independently, with Wendy’s headquartered in Dublin, Ohio and Arby’s in Atlanta, Georgia. Wendy’s/Arby’s Group is the third largest quick-service restaurant company in the United States.

 

Wendy’s menu features hamburgers and filet of chicken breast sandwiches and wraps, chicken nuggets, chili, baked and French fried potatoes, freshly prepared salads, soft drinks and Frosty desserts. As of April 4, 2010, there were 6,540 Wendy’s restaurants, of which 1,390 were company-owned and 5,150 were franchised.