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Non-Tech : wendy's
WEN 8.410-0.2%Jan 23 9:30 AM EST
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To: Shawn M. Downey who wrote (57)8/6/1998 9:25:00 PM
From: Demetre Deliyanakis  Read Replies (2) of 91
 
Shawn

Thank you for your comments. The lack of a good breakfast menu has hurt WEN in the past.

I read that Americans prefer bagels to Doughnuts. Is this true?

The stats in Canada are as follows:

(sales in restaurants and coffee shops per two week period)
(000's)

1993 1997
Doughnuts 3,400 3,000
Muffins 3,100 2,500
Bagels 561 1,600

(Source :Globe and Mail 7/10/98)

TH offers all three products. I would say that their muffins and doughnuts are the best tasting.
TH has good bagels although my wife , who is American, prefers Manhattan Bagels.

As you may know they are going bankrupt . I like the fact that TH has adapted to the change in canadian tastes by offering decent bagels.

It is my understanding that in the U.S., there is only one national doughnut chain (Dunkin Donuts) . I think that in the next 10 years TH will become a formidable competitor to DD

The key for Wendy's is to promote TH products. I am sure most people will like TH products once they have tried them.

Another couple of positives on Wendy's is that they will be able to buy up some locations that were occupied by the now defunct Long John Silver and the soon to be defunct Boston Market. It is cheaper for them to buy these locations or take over the leases than build there own stores.

Also, I would not rule out an eventual takeover bid by a competitor like Tricon Global (KFC, Taco Bell and Pizza Hut). This company which was spun off from Pepsico is missing a burger and doughnut chain. Iam not saying that this will happen but it is an idea.

Congratulations on your purchase of Wendy's . I think you will handsomely rewarde over the next few years.
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