Wendy's really has flipped its wig. The No. 3 burger chain has elected to focus on adult consumers rather than "heavy fast-food users" ages 18-24—a move that some analysts are calling risky.

While McDonald's and Burger King have enjoyed a rise of mid-single digits in same-store sales this past year, Wendy's sales have been largely flat each of the past three years. During this period Wendy's has vacillated between frat humor (the widely panned red-wig ads) and more-straightforward fare (its current "It's waaaay better than fast food" effort).

This schizophrenic brand messaging is about to stop, per the company. Last week, Nelson Peltz' Triarc closed its $2-plus billion deal to purchase the chain. CMO Ken Calwell, who returned to the company after seven years at Domino's, has been given his marching orders: Target adults with a quality message.

"We're not going to focus as narrowly as our competitors, like Burger King, who target the 18-24 group. Our media buy will be skewing older, more broadly," said Wendy's rep Bob Bertini. "Our research shows consumers still give us credit for high quality. That's a platform we can continue to build upon to differentiate ourselves from our competitors. Quality is our platform."

But a lot has changed since Calwell left in 2001. Following Dave Thomas' death in 2002, the chain has launched a new tagline nearly every year. Thomas had anchored the brand's identity since "Where's the beef?"

Wendy's failed ad efforts have been less about choosing the wrong message and more about indecision, said Jeff Davis, president of the San Clemente, Calif.-based Sandelman & Associates. "Business was soft so they decided 'we should go after that younger group.' They had some success but they lost some of the older consumers. Had they stuck with [targeting the core 18-24 crowd] over a long-period of time it may have proven successful."



Another change: Innovations like Wendy's Garden Sensations Salads, launched under Calwell's watch, will be harder to come by since the burger scene has changed dramatically. McDonald's and BK have added Angus burgers, salads and premium coffees. Meanwhile, fast casual burger chains like Whataburger, Fatburger, In-and-Out Burger and others expanded. "The rules have changed: McDonald's has  moved up and then there are local chains like Smashburger above them competing for the same consumer," said Arjun Sen, president, Restaurant Marketing Group, Centennial, Colo. "Wendy's will need much more precise positioning. They have their work cut out for them."

Wendy's sees the more mature consumer as a less mature market. But, "walking away from the most desirable segment is a risky strategy," said Ron Paul, president of food service consultancy Technomic, Chicago. "It's understandable that the [24-45 segment] is less competitive, but there's a reason it's less competitive."

Namely, older consumers tend to gravitate away from fast food. Wendy's is currently attempting to lure them back in with its three-pronged value-menu approach, which offers the Double Stack Cheeseburger, Jr. Bacon Cheeseburger and Crispy Chicken Sandwich for 99 cents. But, unlike the late 1980s when the chain created the 99-cent value menu concept, the playing field has been leveled.

Meanwhile, Wendy's is playing catch-up in the renovations department. It plans to remodel thousands of locations. McDonald's has been working to "de-plasticize" its locations for the past three years.

Wendy's is also working to kick start a breakfast menu, which has been stuck in neutral. The chain has eyed the morning daypart for years; however, items like its Breakfast Panini are still only available at 600 of its 5,900 U.S. locations. "Once we prove breakfast out, we anticipate rolling it out into company stores and then franchise stores," said Bertini.

Breakfast is perhaps the most difficult daypart to conquer, said Sen. "It's the one time of day when consumers' schedules are completely fixed. Everything is on autopilot. Breaking into that mindset is difficult and takes a longtime." Plus, they are competing against McDonald's, which not only has a stranglehold on that segment, but has broadened its appeal among most age groups due in large part to its hefty ad budget. The $770 million it doled out last year was more than double Wendy's $316 million, per Nielsen Monitor-Plus.

"McDonald's can afford to go after a broader demographic," said Paul. "Wendy's doesn't have that kind of marketing clout."