In: Finance
What is Wendy's SWOT analysis as of 2018?
What is Wendy's future forcast and trends ?
Wendy's SWOT analysis as of 2018 | |||
Strenghts | |||
1 | Menu | Wendy’s gives a more personalized feeling to the customer which is more about the design of their menu which has items like Bacon Portabella Melt on Brioche, which is fancier. | |
2 | Restaurent feeling | Though Wendy calls itself a fast food chain the ambience and the food reminds one of a restaurant which is what gives it an edge over the regular fast food chains in the market. | |
3 | Image | The fast-food chain has initiated an image activation program which seeks to reinvent all aspects of the brand giving it a new look and feel. | |
4 | Focus on millennials | Wendy’s target segment is the millennials and all their campaigns are directed towards this group including the brand icon Red played by the starlet Morgan Smith Goodwin who has a lot of traits of the millennial generation. | |
Weakness | |||
1 | Poor Geographic coverage | In comparison to outlets like Mac Donald or Burger King, Wendys is not a well-known brand globally primarily because of their poor geographic coverage. | |
2 | High prices | In comparison to their competition Wendys are priced higher. | |
3 | Refranchising' | Wendy’s is trying to franchise their outlets and this will result in diluting the quality of the brand. | |
4 | Perishable inventory | Restaurants deal with food and their ingredients are perishable | |
Oppurtunities | |||
1 | Growing demand for fast food in semi-urban markets: | There is a surge in demand for fast food in semi-urban markets as social media and internet | |
2 | Steep growth potential for eating out | As the customer’s propensity to spend increases and they become busier many of them prefer to eat out. | |
Threats | |||
1 | Competition | A major threat to Wendy’s is the wide spread presence of McDonalds and Burger king – 2 brands which give Wendy’s a run for its money. | |
2 | Red Meat | Wendy’s is popular for their bacon and beef burgers which are the star attractions of their menu. However many of the Asian countries are against beef and pork which can affect their image in the long run. | |
The Wendy's Company stock is a good long-term (1-year) investment | |||
The Wendy's's WEN shares and potentially its market environment have been in a bullish cycle in the last 12 months (if exists). Currently there seems to be a trend where stocks in the Services, Consumer Cyclical sector(s) have been popular in this period. Our Ai stock analyst implies that there will be a positive trend in the future and the WEN shares might be good for investing and making money. |