Wendys SWOT and PESTLE Analysis
ID : 52611053| Feb 2023| 15 pages
COMPANY PROFILE -Wendy's
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.Wendy's is recognized for its fresh raw materials, fresh beef, made-to-order burgers, fresh salads with hand chopped lettuce and its signature items like chili, baked potatoes and the Frosty® dessert are also best known. With more than 6,700 restaurants worldwide, Wendy’s and its franchisees are working hard with a vision "of becoming the world’s most thriving and beloved restaurant brand." In first quarter of 2019, Wendy's had 43 global restaurant openings and is expected to grow its global restaurant footprint by approximately 1.5 percent by the end of 2019.
Wendy's mission statement reads "To deliver superior quality products and services for our customers and communities through leadership, innovation and partnerships." Wendy's was founded with a Vision 'of serving up quick meal without cutting any corners'.
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
SWOT
PESTLE
"Quality is our Recipe", is the conception that Wendy's was established on. Delivering tasty and fresh food, unusual and delicious recipes, utilizing fresh beef and raw materials, quality of ingredients, readjusting to local preferences, unparalleled variety of savories and desserts, etc. are the core competencies of Wendy's that not only present the company with competitive advantage but also makes the company as one of the world's largest fast-food and restaurant chains.
The report manifests a discussion on all the internal and external factors and their impacts on the company's micro and the macro environment through the SWOT analysis. Precisely the SWOT analysis is a structure, utilized to evaluate a Company's competitive stance by identifying its internal strategic factors like strengths and weaknesses, external strategic factors like opportunities and threats.
Wendy's unusual internal strengths bestow the company with an upper-hand over its rivals. Some of the key strengths are being the world's third-largest burger chain, global presence, strong brand image, attractive and fancy menu, restaurant-like ambience and service, strong employee base, strong supply chain, and enjoying popularity due to its tasty food and fresh ingredients.
Weaknesses like high dependency on a franchise for major revenue, slow paced international expansion, high pricing, an unhealthy image of fast foods, etc., are the areas of concern that breathe caution and demand improvements.
There prevails a huge opportunity of growth for fast food chains and restaurants in emerging markets, thanks to social media and internet people's urge to try different cuisines is profoundly increasing. Wendy's unique food and taste can instantly gain popularity in these markets. Also, the current wave of technology advancements present Wendy's with an opportunity to become more competitive by providing a high level of consumer convenience, customization, and speedy service.
Though Wendy's only uses fresh products and serves fresh food, the fact that burgers and fast food are unhealthy cannot be neglected. Increasing health awareness and fitness consciousnesses especially in millennial is making them dodge fast foods. Consequently, Wendy's encounters a huge threat to its business. The enormous popularity of McDonald's and Burger King is again a potential threat to Wendy’s.
The SWOT analysis for Wendy’s is presented below in a matrix followed by detailed analysis:
The report manifests a discussion on all the internal and external factors and their impacts on the company's micro and the macro environment through the SWOT analysis. Precisely the SWOT analysis is a structure, utilized to evaluate a Company's competitive stance by identifying its internal strategic factors like strengths and weaknesses, external strategic factors like opportunities and threats.
Wendy's unusual internal strengths bestow the company with an upper-hand over its rivals. Some of the key strengths are being the world's third-largest burger chain, global presence, strong brand image, attractive and fancy menu, restaurant-like ambience and service, strong employee base, strong supply chain, and enjoying popularity due to its tasty food and fresh ingredients.
Weaknesses like high dependency on a franchise for major revenue, slow paced international expansion, high pricing, an unhealthy image of fast foods, etc., are the areas of concern that breathe caution and demand improvements.
There prevails a huge opportunity of growth for fast food chains and restaurants in emerging markets, thanks to social media and internet people's urge to try different cuisines is profoundly increasing. Wendy's unique food and taste can instantly gain popularity in these markets. Also, the current wave of technology advancements present Wendy's with an opportunity to become more competitive by providing a high level of consumer convenience, customization, and speedy service.
Though Wendy's only uses fresh products and serves fresh food, the fact that burgers and fast food are unhealthy cannot be neglected. Increasing health awareness and fitness consciousnesses especially in millennial is making them dodge fast foods. Consequently, Wendy's encounters a huge threat to its business. The enormous popularity of McDonald's and Burger King is again a potential threat to Wendy’s.
The SWOT analysis for Wendy’s is presented below in a matrix followed by detailed analysis:
| 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
Strength
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Weakness
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Opportunity
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.
Threat
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SWOT & PESTLE (combined)
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WHY BUY THIS REPORT?
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
• Wendy's SWOT and PESTLE analysis report demonstrates an understanding of the complex internal and external factors shaping the brand and its operations.
• The SWOT analysis report consolidates internal and external analysis. Internal analysis manifests this American quick-service restaurant chain’s strengths and weaknesses, whereas the external analysis helps to identify the opportunities for development and threats that can impede growth.
• The Pestle analysis highlights the current trends in the Restaurant and Food industry with an explicit depiction of macro factors and its influences on the industry and largely on the Wendy's company.
• The analysis report helps in identifying the impact on Wendy's business model by the influencers like political, economic, social, technological, legal and environmental factors.
• Outline of the Wendy's merger, acquisitions, capital raising, equity transactions, alliances or partnership ventures, deal valuations and the synergies that were accomplished with them.
• Comprehensive company analysis to infer information about company profile, business model, business plans and marketing strategy, including abstract data of Wendy's subsidiaries, value proposition, and revenue jumps.
• Summarization of Wendy's USP or unique selling proposition, mission statement and vision statement.
• Penetrations into Wendy's business model, along with further categorization and analysis of key business segments and business case study.
• Crisp synopsis of Wendy's core competencies that added competitive advantage to the company over its major competitors.
• Identifying the core values, key performance indicators and success factors that contributed to sustainable growth and proliferation.
• The SWOT analysis report consolidates internal and external analysis. Internal analysis manifests this American quick-service restaurant chain’s strengths and weaknesses, whereas the external analysis helps to identify the opportunities for development and threats that can impede growth.
• The Pestle analysis highlights the current trends in the Restaurant and Food industry with an explicit depiction of macro factors and its influences on the industry and largely on the Wendy's company.
• The analysis report helps in identifying the impact on Wendy's business model by the influencers like political, economic, social, technological, legal and environmental factors.
• Outline of the Wendy's merger, acquisitions, capital raising, equity transactions, alliances or partnership ventures, deal valuations and the synergies that were accomplished with them.
• Comprehensive company analysis to infer information about company profile, business model, business plans and marketing strategy, including abstract data of Wendy's subsidiaries, value proposition, and revenue jumps.
• Summarization of Wendy's USP or unique selling proposition, mission statement and vision statement.
• Penetrations into Wendy's business model, along with further categorization and analysis of key business segments and business case study.
• Crisp synopsis of Wendy's core competencies that added competitive advantage to the company over its major competitors.
• Identifying the core values, key performance indicators and success factors that contributed to sustainable growth and proliferation.
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Wendy's Segmentation, Targeting and Positioning (STP) Analysis -
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References used in Wendy's SWOT & PESTLE Analysis Report
1. Wendy’s Annual Report 2018 - http://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_WEN_2018.pdf
2. Wendy’s company profile - https://www.reuters.com/companies/WEN.O
3. Wendy’s environmental sustainability - https://www.wendys.com/environmental-sustainability
4. Wendy’s revenue 2018 - https://www.macrotrends.net/stocks/charts/WEN/wendys/financial-statements
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Wendy's SWOT and PESTLE analysis has been conducted by Deepanker Pandey and reviewed by senior analysts from Barakaat Consulting.
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Wendys SWOT and PESTLE Analysis
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