All it takes is one burger with a fancy bun to remake a brand.
After launching their new Pretzel Bacon Cheeseburger last month, Wendy’s has seen it’s stock prices increase 42 per cent, outperforming fast-food competitors McDonald’s and Yum Brands (KFC, Pizza Hut, Taco Bell).
When the pretzel burger launched on July 1 stock prices were hovering around $5.90 a share. Based on 393 million shares outstanding, that valued the company at $2.3billion. Yesterday closing prices were up to $7.80 making the company’s value a month later $3.1billion, according to Wendy’s Vice President of Investor Relations David Poplar.
Wall Street analysts are touring the launch of the pretzel burger as the best move for the fast-food chain in years.
Since the burger’s launch last month, Mark Kalinowski of Janney Capital Market called the burger ‘the best-selling new product introduction by that burger concept in at least a decade.’
The last time Wendy’s stock was this hot was back in 2002 when they marketed a new line of high-end salads.
While the burger is currently a limited-time only affair, if sales continue to rise it could become a permanent fixture on the menu.