Wendy’s looks to spend its way to bigger profits


Number three burger chain Wendy's was able to post positive profit results in Q2 despite a slight loss in revenue. The company is banking on a new advertising campaign to turn its fortunes completely around. One driver of its current difficulties is a menu board featuring higher prices, but those same higher prices are expected to positively impact the bottom line going forward. Reuters notes that the ad campaign, called "That's Right," stars fresh beef and according to company execs, is already enjoying positive consumer response.

SmartMedia observation: Do you ever get in your car around noon in search of food, without any real plan as to where you're going to go to get it? A lot of people do this. It's the perfect time for a restaurant, particularly a fast-serve restaurant, to make its best pitch. The hungry person who just got in their car is not going to be watching TV or reading a newspaper or logging onto a website. No, they will probably be listening to the radio. You'll be doing owners of these franchises a great favor when you remind them of these facts.