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Wendy’s to Add Pretzel Burger

People love pretzels and people love burgers. Why not combine the two into one glorious, calorie-filled delight? That’s what Wendy’s (NASDAQ: WEN) is thinking. According to The Exchange, the Ohio-based fast food chain is testing a pretzel burger that the company calls its Pretzel Bacon Cheeseburger in select markets.

According to Mark Kalinowski of Janney Capital Markets, in the tests, the pretzel burger ranked among the highest of any Wendy’s test items over the past twenty years. The burger is a beef patty with cheese, lettuce, tomato, onions, and bacon on a pretzel-style bun.

Wendy’s has been on a campaign to reinvent itself. It updated its logo, altered it’s french fries, repackaged its burgers, and now makes its famous frosty available in waffle cones.

As of the end of 2012, Wendy’s had 6,186 restaurants in North American with 1,427 ran by the company and the remaining managed by franchises.

Wendy’s stock is up 28 percent in the past six months and analysts are generally positive on the company. It trades at 25 times forward earnings compared to McDonald’s (NYSE: MCD) that trades at 15 times and Burger King (NYSE: BKW) that trades at 20 times. The stock trades at a premium to its peers but when compared to Burger King that is up only eight percent and McDonald’s that is up 11 percent in the past six months, investors appear ready to pay for a name like Wendy’s that has more growth potential.

Will the pretzel burger be the company’s next big hit? If rumors are true, we’ll know soon enough.

Disclosure: At the time of this writing, Tim Parker had no position in the equities mentioned.

[stock-tools exchange="NASDAQ" symbol="WEN" image_height="180" image_width="300"]

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