Wendy’s is launching menu innovations in the coming months to drive customers to its stores and gain an edge over rivals that have been struggling to drum up traffic in recent quarters.
During the company’s investor day on Thursday, the chain announced that new Frosty desserts – the Frosty Swirls and Frosty Fusions – will hit menus this spring, adding to its growing list of innovations. It follows the debut of the limited-edition Thin Mints Frosty, which is a collaboration with Girl Scouts of the USA.
The Frosty Swirls are a choice of chocolate or vanilla Frosty swirled with a choice of sauce. Frosty Fusions blends those sauces with mix-ins, according to the company.
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“Frosty is one of the most iconic items on Wendy’s menu and we know that consumers are increasingly seeking new flavors and variety,” Wendy’s Chief Marketing Officer Lindsay Radkoski said.
The new Frosty offerings are part of the company’s goal to update core menu items and “launch impactful innovation to meet consumer preferences and win in fast growing segments,” according to Wendy’s.
During its fourth-quarter earnings call last month, the company reported that its “traffic and dollar growth outpaced” the entire quick-service restaurant burger category in the U.S.
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Executives credited its growth during the three-month period ending on Dec. 31 to the success of its collaboration with Paramount in celebrating SpongeBob’s 25th anniversary.
“At its peak, this fan favorite drove an impressive 20% lift in same-restaurant sales with increased traffic and an average check, including a Krabby Patty nearly double our typical size,” CEO Kirk Tanner told analysts on the call. He added that this showcased the company’s approach to partnerships and innovation in its core offerings.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WEN | THE WENDY’S CO. | 15.53 | +0.37 | +2.44% |
The quick-service sector started ramping up innovative menu offerings and adding more value deals after facing slowing traffic in back-to-back quarters as inflation-wary consumers continued to eat at home more often.
For instance, McDonald’s CEO Chris Kempczinski previously warned that while it anticipated a challenging environment in 2024, its performance for the year had fallen short of its expectations. The company rolled out a new value menu at its restaurants in a bid to rejuvenate traffic.
