Wendy's (WEN) to Launch Breakfast Business Across Canada
The Wendy's Company WEN has been benefiting significantly from its breakfast business. The company is leaving no stone unturned to expand its breakfast business presence. The company is planning to launch breakfast across Canada starting May 2.
Liz Geraghty, chief marketing officer, International, The Wendy's, said, “We've done the work. We've immersed ourselves in what Canadian customers want from their breakfast through extensive research and have worked closely with our franchisees to ensure their teams are set up to successfully deliver a breakfast worth waking up for.”
Canadian customers can enjoy Wendy's fan favorites such as the Breakfast Baconator and Frosty-ccino. The company is hiring more than 1,500 new crew members to serve the breakfast menu.
Breakfast Offerings to Drive Growth
Wendy’s continues to focus on Breakfast daypart Offerings to drive incremental sales. Since its launch on Mar 2, 2020, across the United States, the model has contributed 6.2%, 6.4% and 6.3% to U.S. systemwide same-restaurant sales during fiscal second, third and fourth quarters of fiscal 2020, respectively. During the fiscal fourth quarter, breakfast remained solid at approximately 7% of sales. In first-quarter fiscal 2021, breakfast accounted for nearly 7% of sales. It contributed significantly to restaurant average unit volumes (or AUV). During the fiscal second quarter, breakfast sales improved 10% on a sequential basis. In the third and fourth quarters of 2021, robust performance of breakfast continued, which accounted for 7.5% and 8.5% of sales, respectively, primarily driven by morning meal traffic share gains within the QSR burger category.
The Zacks Rank #3 (Hold) company has been benefiting from its marketing efforts, high-quality offerings, repeat ordering and high customer satisfaction levels. In 2021, the company’s breakfast business surged 25%. The company expects the breakfast business in the United States to accelerate in 2022 by roughly 10% to 20%. By the end of 2022, the company anticipates average weekly U.S. breakfast sales to be roughly $3,000 to $3,500 per restaurant.
Shares of the company have fallen 7.1% in the past six months, compared with the industry’s decline of 14.3%.
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Key Picks
Some better-ranked stocks in the Zacks Retail-Wholesale sector include and Dave & Buster's Entertainment, Inc. PLAY, Arcos Dorados Holdings Inc. ARCO and Tapestry, Inc. TPR.
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The Zacks Consensus Estimate for Arcos Dorados' 2022 sales and EPS suggests growth of 10.3% and 62.5%, respectively, from the year-ago period's levels.
Tapestry carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 28.2%, on average. Shares of the company have declined 23% in the past year.
The Zacks Consensus Estimate for Tapestry's 2022 sales and EPS suggests growth of 17.5% and 22.9%, respectively, from the year-ago period's levels.
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The Wendy's Company (WEN) : Free Stock Analysis Report
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