Wendy’s Comes Up Wendy’s Comes Up with a New with a New

Strategic RecipeStrategic Recipe

Janet Adamy, Wall Street Janet Adamy, Wall Street Journal, September 30, 2008Journal, September 30, 2008

BackgroundBackground

Third largest hamburger chain with 6,625 Third largest hamburger chain with 6,625 locationslocations

Declining performance since founder Dave Declining performance since founder Dave Thomas died in 2002Thomas died in 2002

Acquired by Triarc Cos. for $2 billion in Acquired by Triarc Cos. for $2 billion in deal forced by the boarddeal forced by the board

Matches Wendy’s with much smaller Arby’sMatches Wendy’s with much smaller Arby’s Roland Smith, President & CEO of Roland Smith, President & CEO of

Wendy’s/Arby’s Group Inc unveiled a new Wendy’s/Arby’s Group Inc unveiled a new strategystrategy

Question?Question?

What market is Wendy’s currently What market is Wendy’s currently targeting?targeting?

How effective has this been?How effective has this been?

New StrategyNew Strategy Re-focus on 24-49 year old market by Re-focus on 24-49 year old market by

emphasizing quality and freshnessemphasizing quality and freshness ““breath of fresh air from the red-wig campaign”breath of fresh air from the red-wig campaign”

Alter the $.99 value menu due to increased costsAlter the $.99 value menu due to increased costs Improve fries, buns and baconImprove fries, buns and bacon Break into the breakfast crowdBreak into the breakfast crowd

Fastest growing segment of FF industryFastest growing segment of FF industry Reformulate menuReformulate menu Improve coffee – FolgersImprove coffee – Folgers Espresso?Espresso?

Remodel dated stores Remodel dated stores Credit crunchCredit crunch

Questions for DiscussionQuestions for Discussion

How successful is Wendy’s likely to How successful is Wendy’s likely to be?be?

Wendy’s was clearly tied to Wendy’s was clearly tied to founder/CEO Dave Thomas. Is there founder/CEO Dave Thomas. Is there another company where the CEO is another company where the CEO is closely tied to the success of the closely tied to the success of the firm?firm?

““Just a week after reassuring investors and Just a week after reassuring investors and employees about his health, employees about his health, AppleApple Inc. Chief Inc. Chief Executive Steve Jobs disclosed he has a Executive Steve Jobs disclosed he has a ‘more complex’ medical condition and would ‘more complex’ medical condition and would take a leave of absence until the end of take a leave of absence until the end of June.” June.” WSJ, January 15, 2008WSJ, January 15, 2008

Apple shares fell 7% in late trading on the Apple shares fell 7% in late trading on the newsnews