Wendy's revolutionizes desserts with new Frosty offerings
- Wendy's will introduce two new Frosty product lines, Frosty Swirl and Frosty Fusions, in Spring 2025.
- These innovations aim to attract customers and leverage nostalgic appeal from past Frosty flavors.
- Analysts expect the changes to improve Wendy's stock growth rate and potentially open collaboration opportunities.
In the United States, Wendy's is gearing up for significant innovations to its popular Frosty dessert lineup. Scheduled to be introduced in mid-April and mid-May of 2025, these new offerings, specifically Frosty Swirl and Frosty Fusions, aim to enhance customer engagement and attract new patrons. Analyst Greg Badishkanian from Wolfe Research reported these developments in a note on February 19, 2025. The Frosty Swirl will feature various mixed-in flavors like strawberry, caramel, or brownie batter, while Frosty Fusions will give customers the chance to customize their desserts with different sauces and toppings. This move is expected to not only refresh the Frosty brand but also evoke nostalgia among longtime customers familiar with Wendy's previous Twisty Frosty flavors from the 2000s, which offered toppings like cookie dough, Oreos, and M&Ms. The anticipated menu changes come as Wendy's aims to recover from a difficult year, during which the stock price declined by 19%. Wolfe Research maintains an outperform rating for Wendy's stock, with a price target set at $17, reflecting a 13% potential increase based on the optimistic outlook surrounding these new Frosty products. The analyst's report suggests that these innovations could contribute significantly to improving the overall growth rate for Wendy's, which has set ambitious expectations for 2025. Additionally, the introduction of these products may open collaboration opportunities with well-known consumer brands, further driving consumer interest. The upcoming investor day in March will likely provide further insights into Wendy's product rollouts and strategies moving forward. However, analysts also caution that while customization can drive consumer excitement, it may lead to increased operational complexity within the fast-food chain. Despite these potential challenges, Wendy's remains confident that these changes will lead to sustainable growth and a stronger position in the competitive fast-food market.