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Non-Tech : wendy's
WEN 7.790+0.9%Jan 30 9:30 AM EST

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To: francisco figueiredo who wrote ()2/27/1997 5:04:00 PM
From: M.A. Miller   of 91
 
I think the whole think is a bunch of smoke. No or little affect on Wendys. In a combo McDonanlds Big Mac meal for $2.99, only about .75 cents is allocated to Big Mac. To get the .55 cent Big Mac you have to buy a $1.05 coke and $1.05 fry which still leaves a bill of $2.65, so you're only talking about a savings of .30 cents between Big Mac 55 cent combo meal and $2.99 wendy's combo. It may have some affect, but very few adults will switch for 30 cents because the taste of Wendy's is so much better.

I see little affect on Wendy's. I think the 55 cent McDonalds deal is a gimmick to get people in. If they simply lowered their combo meal from 2.99 to 2.65 or 2.70, they're wouldn't be as much promotional hype for McDonalds, which is what they want.

And the breakfast promotions by McDonalds will have even less impact on Wendy's since breakfast is such a small, but growing revenue segment for Wendy's.

I see the 20.75 price for Wendy's stock as short term trading opportunity, or a good entry point for a long term holding, whichever way you like it.
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