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Wendy's breakfast plans

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A big part of Wendy's International Inc. (NYSE:WEN) presentation to its stockholders recently was its plans to reintroduce a breakfast menu. According to an interview with Wendy's chief marketing officer in Columbus Business First, about one in three test restaurants are pulling in $3,000 a week in breakfast sales.

The company has settled on a typical menu of egg, bacon/sausage and cheese sandwiches on a biscuit similar to the bread used on its new line of Frescata sandwiches. It will also offer its own versions of the morning burrito and French toast sticks.

Wendy's is all too aware of the value competition in this market. Burger King Holdings, Inc. (NYSE:BKC), for example, is set to introduce a new slew of sub-dollar choices. Look for Wendy's to do the same. Coffee is a big part of the draw, and its choice of a coffee partner has yet to be announced. Wendy's may be willing to pay to tie in a name-brand to elevate the breakfast appeal.


To back the launch, the company is planning a $30 million ad campaign over the next two years, specifically for breakfasts.

Wendy's first introduced breakfast in 1985, but ran into a number of problems: the food wasn't convenient to eat with one hand while driving, and it took too long to prepare (made to order omelets? Who wouldn't have been able to see a problem there?). Worst of all, stores found it difficult to switch over from one meal to the next, and consequently the all-important lunch traffic suffered quality and speed problems. Wendy's is adamant that these mistakes won't be repeated.

And it shouldn't. Wendy's had decades to watch McDonald's Corp. (NYSE:MCD) polish this sector of the business. If Wendy's can match price -- and our taste for high-fat breakfast foods remains constant -- it should be able to wiggle into a place in the breakfast line.

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Last updated: July 06, 2009: 09:36 PM

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