Why Wendy's brought back 50 ¢ Frosties

The fast food chain announced Thursday that a Frosty milkshake would cost 50 ¢ for a limited time. Wendy's called the agreement "a favorite of certified fans". A small Frosty normally costs 99 ¢.

The agreement is a favorite that Wendy (MAGNIFYING GLASS) hopes continue on their way. The company, which reported solid first quarter results on Wednesday, said its North American store sales had opened at least a year, up 1.3 percent, thanks to new menu options. The stock is up 20% for the year.

Penegor said the Frosty 50 ¢ contract was a "good traffic factor" and that it should get thirsty customers to buy food. Wendy's also expects her to be able to encourage the sale of low-cost milkshakes to her customers by persuading them to buy a more expensive Frosty Cookie Sundae.

"We have an excellent" opportunity "to switch from a 50 ¢ Frosty when you come to a more indulgent dessert," he said.

This is a strategy that will probably work, according to Peter Saleh, a restoration analyst at BTIG Research.

"It's a way to attract customers and most of them will come to buy other items," he told CNN Business.

His company congratulated Wendy's for staying away from major discounts, like the $ 1 Double Stack promotion offered in the first quarter of 2018, in favor of more expensive meal deals. But he added that Wendy's 50 ¢ promotion would not slow his momentum, as desserts represent "a small percentage of his total sales".