Restaurant company Wendy's Co WEN may have a secret weapon up its sleeve in the battle of fast food restaurants as the industry competes to win customers.
What Happened: While most restaurants are focused on value menu offerings, Wendy's is turning its attention to a collaboration with one of the most well-known television characters in the last 25 years.
Wendy's announced Wednesday that it is collaborating with Paramount Global PARAPARAA owned Nickelodeon to celebrate the 25th anniversary of "SpongeBob SquarePants."
The restaurant company is rolling out its Krabby Patty Kollab that includes several menu items available at participating Wendy's locations for a limited time beginning Oct. 8. On Oct. 7 a Los Angeles location will offer an early sneak peek of the collaboration with "an immersive Wendy's drive-thru experience."
Wendy's is launching the following unique exclusive menu items:
- Pineapple Under the Sea Frosty: iconic vanilla frosty with pineapple mango flavored puree swirl
- Krabby Patty Kollab Burger: quarter pound of Wendy's fresh, never frozen beef, with two slices of American cheese, crip lettuce, tomato, pickle, onion, and a top-secret Krabby Kollab sauce on a toasted premium bun
- "The Krabby Patty Kollab menu items are worth the wait for both ‘SpongeBob SquarePants' fands and Wendy's customers alike," the restaurant company said.
Wendy's will be the exclusive restaurant brand to partner on the "SpongeBob SquarePants" inspired menu items.
"In a world of people cutting corners, Wendy's is known for quality in everything we do – from our fresh, famous food to collaborations with brands that our fans love," Wendy's U.S. Chief Marketing Officer Lindsay Radkoski said.
Radkoski said the hope is that fans of all ages enjoy the collaboration of "two of the most iconic squares in pop culture."
Read Also: Wendy’s Q2 Performance: Revenue Below Expectations, Increased Costs Impact Operating Profit
Why It's Important: The partnership could prove beneficial for Wendy's. It will likely highlight the company's unique square beef patties on its burgers. The partnership also highlights how Wendy's went from having one Frosty flavor to offering limited time flavors.
In 2006, Wendy's launched a vanilla Frosty alongside its signature chocolate flavor. Over the years, Wendy's has also offered flavors like strawberry, orange dreamsicle and triple berry.
Restaurant companies have been partnering with celebrities for years mainly through advertisements. McDonald's MCD turned to celebrities for partnered meals that in some cases brought huge traffic to locations. McDonald's partnered with the likes of BTS, Saweetie, J Balvin and Travis Scott on meals.
Wendy's missed revenue estimates in the second quarter. Over the last five quarters, the company has missed revenue five straight times. However, it beat earnings per share expectations three times, according to data from Benzinga Pro.
The restaurant company is expected to report third-quarter financial results in October. While the quarter won't include the results of the SpongeBob collaboration, the report could be a potential catalyst for Wendy's.
If the company misses estimates, it could focus on the fourth quarter and how the collaboration is performing. If the company beats estimates, it could have extra optimism if it can point to how the collaboration is performing.
Price Action: Wendy's stock is down 1.1% to $17.46 on Wednesday, versus a 52-week trading range of $15.62 to $20.65.
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