Fresh fruit has fallen flat at Wendy's (NYSE:WEN). The company revealed on Monday that it is yanking fruit selections from its menu in the wake of subpar sales.
It might be tempting to dismiss the withdrawal of the menu items as a relatively insignificant event and chalk it up to the short attention span of U.S. consumers. After all, not so long ago, it was hard to turn around without encountering a news story on America's obesity problem, and consumers seemed to react by lapping up healthier foodstuffs. With the passing of the obesity news cycle, Americans may have simply abandoned healthy choices and returned to their old ways.
But although the fickle consumer may have something to do with fresh fruit's failure at Wendy's, the reversal may also reflect a larger problem at the company. Wendy's introduced the item in January, most likely in response to McDonald's (NYSE:MCD), which six months earlier had launched its Apple Dippers selection in an appeal to healthy eating.
Initial sales of Wendy's fresh fruit were robust. But same-store sales at Wendy's-branded restaurants nevertheless fell year over year in the second and third quarters. McDonald's, by contrast, continues to post same-store increases, partially thanks to its healthy-initiatives program. The question then arises: Why has Wendy's struggled while McDonald's has thrived, when both companies were rolling out similar menu items?
The reason may have to do with the type of transformation at McDonald's. As I've noted before, McDonald's is doing more than going healthy; it's moving upscale. The company has been modernizing restaurants, rolling out premium coffee, even contemplating spiffier uniforms for its employees. The change has been fundamental enough that some folks are comparing McDonald's to Starbucks (NYSE:SBUX). In yet another sign of the "Starbucksification" of McDonald's, the Golden Arches will now be offering gift cards, long a staple at the coffee giant.
Wendy's, meanwhile, has been aggressively moving on the health front, but its efforts have been largely a haphazard attempt to catch up with McDonald's. As a result, Wendy's image has remained as just another fast-food joint.
Admittedly, the company has been a victim of bad press, and it has had to focus on its Tim Horton's unit. With the planned spinoff of Tim Horton's, Wendy's should have more time to focus on an area that needs help -- its brand.
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Fool contributor Brian Gorman is a freelance writer in Chicago. He does not own shares of any companies mentioned in this article.
