Wendy's Essay

7609 Words Apr 10th, 2015 31 Pages
Wendy Company

Report to the Turnaround Committee

Prepared By:
ABC Consulting, LLC
Bryant Perez

August 12, 2013



Executive Summary Background Competition and the Market Field Reports and Competitive Analysis Problems Recommendations Summary Pro-Forman Income Statement Pro-Forma Balance Sheet Notes to Pro-Forma Statements Appendix A: Competitors & Ratios Appendix B: Field Reports Appendix C: Product Analysis Appendix D: Restructuring Timeline

Executive Summary

Wendy’s is currently the world’s 2nd largest quick-service hamburger company, operating 1,438 stores and franchising 5,177 store in the U.S. and 27
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Generally speaking the QSR Industry is extremely saturated and operates in a pure competition manor. Primary factors of importance are; Quality, Customer Service, Location, Convenience, and Consistency. In more recent years competitors have continued to expand into emerging markets such as the Asia Pacific Region, which has resulted in a substantial increase in sales/profits.

A further analysis of the ratios of key competitors is included in Appendix A, Competitors and Ratios. In this analysis we can see that The Wendy’s Company is underperforming their competitors in the areas of Sales Growth, Return On Assets, and Cost of Goods Sold.

Field Reports & Competitive Analysis

Field reports were conducted on a number of criteria in order to get a full analysis of the company. These criteria include; Customer Complaints, Location, Product, and Pricing Panel reports. The customer complaint study was conducted using 4 separate complaints in the categories of customer service, food quality, and cleanliness. Through the analysis it is apparent that the underlying issues Wendy’s has include slow service/inattentive staff, low food quality/improperly prepared food, and dirty bathrooms/dining areas. Two Locations were visited in different geographical locations in order to get a better understanding of the Wendy’s experience. The findings of this report lead to see inconsistency across locations and first hand experience of the common issues

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