Just past his one-year mark as Wendy's (WEN) CEO, Kirk Tanner is leaning on more than square burgers to add some sizzle to the 55-year-old restaurant chain's stock price.
Think a new burger that promises "thick-cut" bacon, drive-thrus powered by Wendy the robot, Frosty drinks with chocolate and vanilla swirls, and not-yet-announced breakfast and chicken sandwich innovations.
"It's huge," Tanner told me on Yahoo Finance's Opening Bid podcast (video above; listen in below) when I pressed on whether the thick-cut bacon was just a marketing gimmick. "I've eaten like six of these. I mean, it is substantial."
When asked if the industry has reached peak chicken sandwich, Tanner is quick to push back.
"No. I think you can always innovate and always move the bar higher," said the former North America beverages CEO for PepsiCo (PEP).
What's new on the menu for Wendy's:
The iconic fast food chain could use a shot in the arm.
Wendy's shares have dropped 17% in the past year, underperforming rival McDonald's (MCD) 15% gain. KFC and Pizza Hut owner Yum! Brands (YUM) is up 15%, while Burger King parent Restaurant Brands (QSR) is down 9%. Chipotle (CMG) is off by 16%.
Wendy's market cap stands at a mere $3 billion, compared to McDonald's at $219 billion, Yum! Brands at $44 billion, Restaurant Brands at $30.8 billion, and Chipotle's $66 billion.
But Wendy's has done its part to tempt investors to take a nibble of the stock.
Its US same-store sales last year rose a decent 1.4%, powered by its breakfast menu and value offering known as the Biggie Bag. Wendy's same-store sales internationally rose 2.8%.
The problem is that industry heavyweight McDonald's has gotten its groove back and is seen as an outperformer relative to Wendy's. Chipotle continues to be on fire with consumers for its huge portion sizes.
Pizza joints such as Domino's Pizza (DPZ) and Papa John's (PZZA) have been attracting diners with discounted prices on pies. Taco Bell has undergone a resurgence for Yum.
"While we view the company's menu innovation efforts constructively, the categories of focus (chicken, frozen desserts, and beverages) will be fiercely contested grounds in the quick-service restaurant category with multiple brands expanding offerings, so the pace of innovation may prove to be table stakes for defending, rather than meaningfully growing, share in fiscal year 2025," Stifel analyst Chris O'Cull said.