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Paper Topic:

SWOT analysis of Wendy

Analysis of Wendy 's International , Inc

Wendy 's International , Inc . is engaged in the operating , developing , and franchising fast-food and fast-casual restaurants globally . They operate the Wendy 's restaurant chain that is comprised of 6 ,645 restaurants as of December 30 , 2007 . Of this twenty-one percent (1 ,414 or 21 .29 ) is operated by the company while the rest (5 ,231 or 78 .71 ) are run by company franchisees

Wendy 's International , Inc

Strengths Weaknesses

Global presence / Overseas Market

International brand recognition

Top 3 in the US fast-food hamburger business

Slow and inadequate product development

Increasing price competition

Decreasing revenue and negative income growth

Opportunities Threats

International expansion

Growing dining-out market

Shift menu mix

Strength of competition

More health-conscious consumers

Rise in commodity cost Analysis of Market Issues

Strengths

Approximately 5 ,400 of all the Wendy 's restaurants are located within the United States while the rest are distributed in twenty six countries around the globe . The global presence and international brand recognition of Wendy 's provides more opportunities for growth expansion , and an overall increase for profitability . Also , the Wendy 's restaurant chain is considered as the top 3 hamburger chain in America This means that it has a considerably large share of customers of fast-food chains who are fond of hamburgers (approximately 13 . As such , this provides opportunities in retaining and possibly increasing its number of customers and amount of profit

Weaknesses

Since 2005 , Wendy 's International , Inc . has been suffering from decreasing revenue and negative income growth . Based on the latest Direct Competitor Comparison ' table of Yahoo Finance , Wendy 's has suffered from a negative quarterly revenue growth during the second quarter of this year while its major competitors continued to increase their revenue (Burger King (9 .50 , McDonald 's (4 .00 , and YUM (12 .10 . Apparently , this weakness can be largely attributed to the inadequate product development of the company . Much of their products have not evolved for the past five years . Furthermore , Wendy 's have not introduced a new food breakthrough for the last ten years . Such is highly needed to attract the changing demands of the fast food target market . In contrast to the slow product development , Wendy 's has been suffering from increasing price competition brought about by its major competitors and the new entrants

Opportunities

Wendy 's should try to target more countries around the globe especially in Europe , Asia , and Latin America . Apparently , the rapidly growing dining out market provides an opportunity to attract more customers However , in to potentially increase its market share , Wendy 's should try to find ways to incorporate new product choices in its menu The company should try to incorporate other major food commodities aside from hamburgers

Threats

Aside from its top two major competitors- Mc Donald 's and Burger King Wendy 's also face threats from new entrants , as well as other fast food restaurant chains . This includes Jack in the Box , Inc , YUM ! Brands Inc , and others . The incidence of health scares (i...

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