Wendy's Isn't Afraid Of McDonald's

Wendys Co WEN, the fast food chain valued at nearly $4 billion, is holding up quite well against the industry juggernaut McDonald's Corporation MCD who is nearly 30 times bigger by market size.

Wendy's stock gained more than 5 percent Wednesday and hit a new-all time high of $16.12 after the company reported a top-and-bottom-line beat in its first quarter and boosted its earnings forecast for the full year.

Wendy's outlook could be a sign the company is offering a superior value proposition against its peers and will continue to do so moving forward. Specifically, the chain's 4-for-$4 meal deal helped boost the chain's same-store sales higher by 1.6 percent in the recent quarter and management guided for a 2 to 3 percent comp gain for the full-fiscal year.

Bring On McDonald's

According to a CNBC report, Wendy's isn't feeling the pressure from McDonald's recent move to offer never frozen beef at its stores. In fact, Wendy's CEO Todd Penegor believes that McDonald's decision brings awareness and credibility to Wendy's burgers, which have been sold to consumers never frozen since 1969.

Penegor emphasized the fact that it's also leading the social media battle to win over the minds of consumers. For example, McDonald's Tweeted that its Quarter Pounder burgers will consist of fresh beef at "the majority" of its restaurants in 2018.

Wendy's response: "@McDonalds So you'll still use frozen beef in MOST of your burgers in ALL of your restaurants? Asking for a friend."

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Image: Mike Mozart, Flickr