Wendy's released part of their new breakfast menu. Here are three elements. (Note: The rating below gives no judgment on our part.)
1. "Honey butter chicken biscuits" is a buttermilk biscuit with a fried chicken sandwiched occasionally with whipped honey butter.
2. "Frosty-ccino" is a Frosty milkshake assigned to cold brew coffee. It comes in two flavors: vanilla and chocolate.
3. "Breakfast Baconator" is an egg, several slices of bacon, a sausage patty, two slices of American cheese and a dollop of Dutch sauce.
This is what Wendy's thinking.
The new offers announced this week include some of the same items Wendy's currently offering in the 300 stores that sell breakfast. A spokeswoman told CNN Business that Wendy plans to offer more than that, including spicy potatoes and croissant sandwiches. A full menu and prices will be released later this year.
Expanding breakfast to nearly 6,000 stores nationwide would basically cost Wendy's around $ 20 million. It plans to employ 20,000 employees for the initiative. Wendy's CEO Todd Penegor said the new menu "provides incredible growth opportunities" for the company.
But analysts at BTIG, who downgraded the stock to neutral from purchases, are less optimistic because of the costs involved.
"We are cautious about the prospects given the required investment upfront, but uncertain payout, extra labor needs at an already low availability, necessity to take market share from established competitors such as McDonald's and general difficulties in expanding day parts in the industry, "BTIG analysts said in a note released Tuesday.
He probably hopes to get money for one of the sector's most important parts of the day. More people prepare breakfast at home than any other meal, and morning is still the only emerging market for the fast-food industry, according to research group NPD.
It has paid off for Dunkin & McDonald's so far (Panera is owned by a privately owned company).
– CNN Business & # 39; Danielle Weiner-Bronner contributed to this report.