The Wendy’s Company (WEN), Sonic Corporation (SONC), Dunkin Brands Group Inc (DNKN): How a Pretzel Saved a Fast-Food Giant

Pretzel sandwich

Dunkin Brands Group Inc (NASDAQ:DNKN) is trying to get into the act with a line of pretzel sandwiches for its evolving lunchtime sandwich menu, which drove a 4% increase in US same-store sales. While still new to the lunch crowd, it is clear that Dunkin Brands Group Inc (NASDAQ:DNKN) has had solid growth owing largely to its sandwiches and healthier options, giving a little diversity to a formerly breakfast- and donuts-only menu.

With the new pretzel sandwich line, including tuna and chicken salad varieties, Dunkin Brands Group Inc (NASDAQ:DNKN) may have a chance to tap into an early market for healthier versions of the Pretzel Bacon Cheeseburger.The company’s lunch options have typically avoided fried foods and leaned more toward bagels with salad fillings and lean meat. However, Dunkin Brands Group Inc (NASDAQ:DNKN) may not have as much room for pretzel-based growth at the moment because of its long-standing breakfast reputation, which carried the company for decades, but entering into the lunch industry puts them in a crowded marketplace where they don’t have the same brand-identification.

The bottom line

The Wendy’s Company (NASDAQ:WEN) has so far been the most successful with this product launch, resulting in share price increases and market cap boosts unseen by the company, in nearly a decade. With the increased sales estimates for the product, and glowing Wall Street reviews, Wendy’s may have hit the jackpot for the time being as the first pretzel-burger joint on the block, giving them a noticeable first-mover advantage.

Sonic Corporation (NASDAQ:SONC) might be the nearest competitor at the moment in this category, but with limitations and low estimates for its version and a highly seasonal business model (drive-up restaurants don’t typically thrive in snow), it won’t have the ability to match Wendy’s growth, being one of the “big three” as it were.

Pretzels are definitely the growing trend in the fast-food world, though until we see movement from the other two big shots, Wendy’s will reap the benefits and fill its pockets while filling our stomachs.

The article How a Pretzel Saved a Fast-Food Giant originally appeared on Fool.com and is written by John McKenna.

John McKenna has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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