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Wendy’s SWOT & PESTLE Analysis

ID : 52611053| Jan 2020| 15 pages


Business Sector :Restaurants and Food

Operating Geography :USA, North America, Global

About Wendy's :

Wendy’s is an American quick-service restaurant chain with core specialty in hamburgers. The holding company of Wendy’s is Wendy’s Company. The company was previously known as Wendy’s/Arby’s Group, and changed its name to Wendy’s Company in 2011. Wendy’s was founded by Dave Thompson on November 15, 1969 at Columbus, Ohio, USA. Currently, the company is headquartered in Dublin, Ohio. As of early 2019, this American fast food chain has presence in 30 countries around the world with over 6700 restaurants, running with approximately 12500 employees across the globe, including 1150 salaried employees, while 11350 hourly employees. Wendy’s hamburgers are square in shape and it is famous for the same. Wendy’s menu includes hamburgers, sandwiches, fries, and its signature ice cream name Frosty.
Quality is our recipe’ is the core philosophy of the company, as established by the founder, Dave himself. The US food chain states "We Believe in Quality. Inside and Out". Wendy's USP or unique selling point lies in being one of the most popular and leader in American international fast food restaurant chain, with over 6700 locations following Burger King and McDonald's.

Wendy's Revenue :

$1.59 billion – FY ending 30th Dec, 2018
$1.22 billion – FY ending 31st Dec, 2017
$1.44 billion – FY ending 1st Jan, 2016

Competitive Analysis of Wendy's

The SWOT analysis for Wendy’s is presented below:
1. Superior social media presence
2. High customer satisfaction
3. Image Activation Initiative
4. Promotional Strategies
1. Overdependence on franchisees
2. Low employee satisfaction
3. Prioritizing premium products over value based offerings
1. Breakfast menu
2. International expansion in Europe
3. Digital ordering and delivery
1. Shortage of workers
2. Growing alternate meat movement
3. Increasing competition
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Detailed SWOT Analysis of Wendy's



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1. Breakfast menu: As the amount of traffic for breakfast increases, Wendy’s has decided to foray into mentioned day part arena by announcing a national breakfast menu in its home market of the United States, which will be launched in September 2020. "Launching breakfast in our US restaurants nationwide provides incredible growth opportunities," Wendy's CEO Todd Penegor in a statement. According to research firm NDP Group, restaurant visits have increased from around 6 billion in 2009 to 7.3 billion 2018. Breakfast restaurant visits as a percentage of total visits has increased from around 15.42% to 17.72%. Fast food chains are positioned to serve the breakfast demand as consumers look for convenience and time saving. Existing players such as McDonald’s. McDonald’s and Jack-in-the-Box are industry leaders with around 25% of sales from breakfast, while for Burger King, the figure is 15%. All these chains have witnessed rise in their breakfast share figure. Now Wendy’s is aiming for the figure to be at least 10%, by investing $ 20 million in 2019, and adding 20,000 employees to the workforce over the coming years.

2. International expansion in Europe: The company in its investor presentation of 2019 has announced that as part of Phase 1 of its international expansion plan, it will launch in United Kingdom in the next 12 to 18 months. Phase 1 of Wendy’s plan is to position itself as a challenger against big brands such as McDonald’s and Five Guys, which have major presence in the UK market. It will use hybrid strategy of company-owned restaurants & multiple franchisees to find optimal flexibility as it opens numerous restaurants in the market. UK is big Quick Service Restaurant burger market with size greater than $4 billion. It is also rapidly growing at 3.2% CAGR. Phase 2 of the expansion plan is to expand in the rest of Europe. United Kingdom will provide foothold for further Europe expansion to Wendy’s. It has already conducted extensive research and is tweaking key business elements such as supply chain and marketing partnership for the launch.

3. Digital ordering and delivery: The digital sales of Wendy’s is growing rapidly as it expects a whopping 325% increase in the same for the year 2019 over 2018. Digital sales make up a mere 2% of Wendy’s total US sales as of 2019, and it aims to stretch the percentage figure to 10% by 2024, as stated by Penegor. It has invested significantly in digital capabilities such as its mobile application, which allows customers to order food with delivery option. It is sustaining strong delivery ratings of 4.5 stars (out of 5). The check sizes of delivery orders have increased by 50% to 60% as well in 2019. Wendy’s has partnered with leading third-party food delivery services such as DoorDash, UberEats and GrubHub. Awareness regarding the online ordering option via third-party services is limited to a small set of customers, and Wendy’s will be spending on marketing efforts to create awareness regarding the same as well. Apart from the delivery, it is enhancing its mobile application by adding intelligence elements and geolocation technology. Voice ordering can also be executed through Google assistant, Alexa, Siri and other such options.


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Check Out Analysis of Other Relevant Companies

References used in Wendy's Analysis Report

1. Wendy’s Annual Report 2018 -

2. Wendy’s company profile -

3. Wendy’s environmental sustainability -

4. Wendy’s revenue 2018 -

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Wendy’s SWOT & PESTLE Analysis - SWOT & PESTLE.COM

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Copyrights and Disclaimer

Wendy's SWOT and PESTLE analysis has been conducted by Deepanker Pandey and reviewed by senior analysts from Barakaat Consulting.

Copyright of Wendy's SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

Wendy’s SWOT & PESTLE Analysis
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