Wendy's pigtails get a makeover
The burger chain is revamping its logo and image amid stiffer competition and regaining some of its lost mojo.
Instead of the boxy, old-fashioned lettering against a red and yellow backdrop, the new logo features the chain's name in red against a clean white backdrop, The Associated Press reported. An image of the smiling redheaded girl in pigtails floats above, looking more vivid and not quite as childlike.
In an interview with the AP, CEO Emil Brolick said he was encouraged by consumer feedback in testing dozens of new logo variations over the past several months.
"When we pushed things too far, they very much reeled us back," he said, noting that it showed just how attached people are to the brand.
It's perhaps the most significant logo update since founder Dave Thomas opened the first Wendy's in 1969, and it comes as the company struggles to redefine itself amid intensifying competition.
Wendy's, which has called 2012 a "transition year," slashed its earnings outlook in May as rising commodity costs ate into profits. Its shares have barely budged this year, and new menu items have gotten mixed reviews. When discussing the heavily promoted W Burger, GrubGrade noted that while "it may leave you a little disappointed immediately after experiencing it, when you really look back on it in perspective, you might find, like me, that it really wasn't too bad after all."
The company, based in Dublin, Ohio, unloaded its struggling Arby's chain last year and is regaining some of its lost mojo. Same-store sales have risen for the past five quarters, a noteworthy accomplishment in uncertain economic times. And it doesn't plan to rest on its laurels.
Wendy's is providing as much as $10 million to franchisees to "re-imagine" their restaurants in 2013 with natural lighting, WiFi service, lounge seating, fireplaces, flat-screen TVs and digital menu boards. By year's end, Wendy's expects to have overhauled 75 restaurants and will accelerate the pace of "image activation rebuilds and remodels" in 2013 and 2014. Half of the company-owned restaurants will be remodeled by the end of 2015.
Wall Street seems to have faith in Wendy's. The average 52-week price target on the stock is $5.05, about 20% higher than where it currently trades. Unless the economy heads into a death spiral, Wendy's should be fine. Then again, the same could be said for its larger rivals, such as McDonald's (MCD).
In the coming months Wendy's needs to back its talk about changing its brand with results.
Remember what happened to Bill Knapp's Restaurant when they did their make-over? Their clientel consisted of young marrieds with children, middle agers, and old agers. Their marketing whizzes decided they needed a make-over to draw in the 17 to 22 year olds. Long soory short, they spent big bucks to re-decorate their restaurants and try to attract young adults. Well, they did not attract many young adults, but they lost their current customers big time. They quickly went out of business.
People don't eat logos, they eat food. They want good food at reasonable prices. And friendly employees and good service are more valued than a re-designed logo.
i use to love wendys hamburgers until they made it with a BIG
THICK BUN and changed everything! so now i have to get
the JR and ask for it dressed! people are so fat they keep
adding more and more bread cheese meat! enough already!
the old logo was better!
For several generations, the golden arches of McDonalds has meant lunch or dinner to kids who can not yet read---this kind of logo recognition is worth way more than stock value!!! Leave "Wendy" alone, get the menu back to what every one expects to find at Wendy's, maybe upgrade the furniture in the stores, and, just for the sake of our health, add something "good for us" to the menu.
If it ain't broke, don't be fixin' it! High-priced suits need some brains poured in!
Here's a different opinion of what they need, other than a new logo. They need some franchise control so that some franchisees don't ruin the brand reputation because they hire imbeciles who are inept at running/working at one of these stores.
We're on our second franchisee for a Wendy's here in a small town in Oklahoma and it is as bad as the first one. Poor service, bad food and now, once again, no customers.
Keep some oversight on your franchisees. They will make or ruin your brand faster than any logo.
Dave had it right.......... :)
Bring back the old look and food...hell with this new stuff.
You would think they could find an artist who does good work...
they shoul;d also improve their image by hiring folks that SPEAK ENGLISH
Face it, people who like Wendy's, like Wendy's. Not McDonalds or Burger King. They just don't compare as far as I'm concerned. I kind of like going in and not being annoyed by a bunch of screaming childeren. I really miss Dave. He knew how to run a hamburger joint. Not like these college educated morons now. Good food and good customer service is the key. Changing just because some over educated, over paid nitwit needs to justify his job is never good.
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
A collapse in the Japanese markets is weighing on U.S. stocks. Is it a buying opportunity? Or a warning sign?
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.