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Wendy's: Key Points from 3Q19

  • 3Q19 comps increased +4.4% with negative traffic offset equally by price & mix. Momentum driven by flavor innovation and its one more visit, one more dollar barbell strategy.
  • The quarter began with its Baconfest promotion - the Bacon Jalapeno Cheeseburger which represented the newest addition to its Made to Crave hamburger line-up. This was followed by the very successful re-launch of its Spicy Nuggets which was well supported by social media & drove a higher ticket (with trade-up from 4 pc to 6, 10 or 50 pcs) along with traffic.
  • Plans to launch breakfast during 1Q20 & corporate believes that it can expand this daypart to 10% sales mix in 3 years. Breakfast will be supported by incremental ad dollars and operators were given an option to opt-out of the program (few did) with another opportunity in 1Q21 in the absence of an adequate financial return. Breakfast will be available at 6:30AM through the drive-thru & at 9AM in the dining room. This initiative will require the addition of 2 staffers to open & 3 to run during the morning.

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