Skip to main content

Market Overview

Wendy's Nationwide Breakfast Launch Is Coming Soon

Wendy's Nationwide Breakfast Launch Is Coming Soon

Fast-food chain Wendy's Co (NASDAQ: WEN) will launch its breakfast offering on March 2, but the math behind Wendys' goals implies a "limited impact" to rivals.

What Happened

Wendy's breakfast menu will offer consumers a "fresh twist to familiar flavors" with new items that are built on fan favorites, the company said. Consumers will soon be able to enjoy items like a Breakfast Baconator, Honey Butter Chicken Biscuit, and a Frosty-ccino.

Wendys' breakfast launch marks its fourth attempt in doing so although management has shown a dedication towards a more meaningful approach, Credit Suisse analyst Lauren Silberman wrote in a note. The breakfast launch is expected to be immediately profitable for Wendy's' franchisees and for the company next year.

Why It's Important For Wendy's

Wendy's' already set a goal of generating $600-$800 million in new revenue from breakfast, which implies 2.0 to 2.5% of total quick-service restaurant breakfast sales. This implies minimal disruption to any one rival. The financial impact to Dunkin Brands Group Inc (NASDAQ: DNKN) could be the most profound and pressure same-stores sales by 1% to 1.5%, followed by starbucks Corporation (NASDAQ: SBUX) at around 1% and McDonald's Corp (NYSE: MCD) at around 0.5%.

However, Silberman said these figures are "potentially aggressive" as it doesn't factor in industry breakfast traffic growth and assume Wendy's proportionately takes share from the largest competitors. Also, the early estimates can't predict how rivals can react and changes in consumer behaviors, among other variables and unknowns.

Silberman maintains a Neutral rating on Wendy's with a $22 price target.

Related Links:

The Latest Food Companies To Announce Ambitious Green Goals

Restaurant Business Dishes Out What To Look Out For In 2020

Latest Ratings for WEN

Mar 2021Argus ResearchDowngradesBuyHold
Mar 2021Cleveland ResearchInitiates Coverage OnNeutral
Mar 2021WedbushMaintainsOutperform

View More Analyst Ratings for WEN
View the Latest Analyst Ratings


Related Articles (WEN)

View Comments and Join the Discussion!

Posted-In: breakfast Credit Suisse Fast Food foodAnalyst Color Restaurants Analyst Ratings General Best of Benzinga

Latest Ratings

FIBKStephens & Co.Downgrades
LEAFCanaccord GenuityDowngrades8.5
AGMSidoti & Co.Downgrades115.0
KEXGabelli & Co.Downgrades
OCGNCantor FitzgeraldDowngrades11.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at