Wendy's Positioned to Become Second-Largest Fast Food Burger Chain

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Wendy's Positioned to Become Second-Largest Fast Food Burger Chain


SANTA ANA, Calif. -- When it comes to fast-food dominance, Burger King may not remain royalty for long. A recently released analyst report found that Wendy's is positioned to beat out its rival and become the second-largest fast food burger chain in the United States, according to an Orange County Register report.

Wendy's two main weapons in the fight for the No. 2 spot are its strategic focus on food quality and its introduction of prototype stores that resemble fast-casual restaurants.

"We expect Wendy's to overtake privately held Burger King for the No. 2 market-share position within the limited-service hamburger sector, perhaps as soon as this year," wrote Mark Kalinowski, an analyst with Janney Capital Markets.

While McDonald's continues its clear dominance of the market share in the limited-service burger segment with 49.5 percent in 2010, according to Technomic, it's a much closer battle for the runner-up spot between Burger King, at 13.3 percent, and Wendy's at 12.8 percent.

"We've never really seen Wendy's surpass Burger King before," Kalinowski told the Register. "I think it will happen."

Kalinowski added that he expects Wendy's sales to increase if it continues to remodel its stores. Around 20 Wendy's locations across the United States have redesigned their interiors to include features such as modern fixtures and flat-screen televisions. Wendy's new CEO also stated earlier this month that the chain has seen positive results from its new Dave's Hot 'N Juicy burgers and plans to go after customers willing to pay a little more for higher-quality food.

"There's more to come," Kalinowski predicted.