Wendy's International (WEN)

Wendy's is vulnerable to profit losses and brand damage due to health scares such as mad cow disease and E. coli outbreaks.

Wendy’s Arby’s Group Inc. (WEN), the third-largest fast food chain in the United States, posted a fourth-quarter loss of $393.2 million, or 84 cents a share, largely a result of impairment charges and falling sales at Arby’s, Reuters reported. In September, Arby’s owner, Triarc, bought Wendy’s International Inc. for about $2 billion in September to form Wendy’s/Arby’s.

Wendy's reliance on fresh beef leaves it more vulnerable to fluctuations in beef prices.

Domestic sales growth at the 500 largest U.S. restaurant chains fell to 3.4 percent in 2008, a decrease from 5 percent the previous year, Technomic Inc, a foodservice consultant, said on Monday.

Wendy's will fail upon entering the QSR breakfast market because stores such as McDonald's and Dunkin Donuts already have a tight hold on the market.

When Wendy used to advertise on TV it made one remember them when one was hungry, otherwise, burger king has the whopper, Mc Donalds has the quarter pounder, what does Wendy have?