Wendy's “Surge Pricing” - Will It Save The Plunging Stock?

Written By Jason Williams

Posted February 27, 2024

Wendy’s stock (NASDAQ: WEN) has been in freefall while the rest of the market has been growing. Will Wendy’s “surge pricing” have a positive impact?

wendys surge pricing - stock freefall

Wendy’s Surge Pricing – What You Should Know

The company just brought in a new executive hoping to turn things around by making the fast-food purveyor more like Uber, the ride-share company.

It’s not going to offer rides home or delivery, however…

Wendy’s is set to implement a dynamic pricing model, akin to Uber’s surge pricing, starting as early as 2025, aiming to introduce features like AI-enabled menu adjustments and time-specific offerings.

This initiative is part of Wendy’s broader strategy to enhance its digital footprint, including the introduction of digital menu boards in select U.S. locations.

Dynamic pricing will allow Wendy’s to adjust prices based on demand and other factors, potentially offering customers value and incentivizing visits.

The company plans to invest $20 million in this technology, which will enable real-time price adjustments on digital menu boards.

However, there’s concern from experts like George Washington University’s Steven Suranovic that customers might react negatively to fluctuating prices, particularly during peak times like lunch. 

Fast Food Pricing Strategies

Wendy’s aims to remain competitive and flexible, enhancing both customer and crew experiences with these digital innovations, but the market obviously has its doubts about this new strategy.

In contrast, McDonald’s has faced criticism for its pricing strategies, particularly the near $18 Big Mac combo, prompting a reevaluation towards affordability, especially for low-income customers affected by inflation.

Wendy’s, already noted as the most expensive fast-food chain in the U.S., seeks to balance quality, value, and innovation with its new pricing strategy.

As the fast-food industry evolves, these changes highlight the increasing role of technology and digital engagement in shaping customer experiences.

For those interested in the intersection of technology and consumer behavior, this particular company presents a fascinating area to explore further as it helps to facilitate such AI-powered solutions for businesses across the nation. We feel it offers far better potential for profits for investors. Even if Wendy’s “surge pricing” works out.

To your wealth,

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Jason Williams

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After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter; the founder of Future Giants, a nano cap investing service; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.

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