Wendy’s – Breakfast Relaunch Modeling

Wendy’s (WEN.US)

[October 29, 2019]

* Breakfast Relaunch Modeling *

Download the spreadsheet here to play around. The reason why I add this page which increases the friction and might affect “conversion” is that I’d like to know where the audience comes from.

On September 9th, 2019, Wendy’s announced plans to launch breakfast across the U.S. System in 2020. The daypart expansion includes recruitment of approximately 20,000 new U.S. employees.

The stock reacted poorly due to concerns including initial investment, incremental labor-related costs in a tight market, additional marketing spends for Wendy’s at company level during the ramp up period and poor track records the Company had in previous breakfast attempts.

The initial model tries to understand the economics of this initiative and to quantify the value added to the business if any.

On-going twitter thread below: