Wendy’s U.S. same-store gross sales fell greater than 11%. | Picture: Shutterstock.
Wendy’s home same-store gross sales plunged greater than 11% within the fourth quarter, the corporate stated on Friday, placing an unlucky exclamation level on one of many hardest years within the chain’s historical past.
Wendy’s is within the midst of closing 5% to six% of its eating places, implying about 300 to 350 places. Additionally it is giving operators extra flexibility on their breakfast hours to enhance franchisee profitability.
For the complete 12 months, the corporate’s U.S. system gross sales fell 5.2% to $11.9 billion amid closures and weak same-store gross sales. Worldwide system gross sales, an enormous focus for the fast-food chain lately, elevated 8.1% in 2025 to $2.1 billion. However that enterprise misplaced some steam late final 12 months, too, with same-store gross sales down 2%.
Wendy’s inventory, which had been down almost 50% over the previous 12 months, fell greater than 6% in premarket buying and selling on Friday.
The chain’s efficiency got here throughout a very troublesome 12 months for the fast-food trade, as lower-income and youthful customers annoyed by excessive costs in the reduction of on their eating frequency. However Wendy’s fourth quarter contrasted with the outcomes reported by rivals McDonald’s (U.S. same-store gross sales up 6.8%) and Burger King (up 2.6%).
But it was additionally the worst quarter in a minimum of 20 years. Wendy’s has not seen gross sales fall that a lot in a single quarter, even through the pandemic or the Nice Recession.
Former CEO Kirk Tanner left the corporate in July to take a job with The Hershey Firm simply 18 months into his tenure. Wendy’s has but to call a everlasting alternative.
“Our fourth quarter efficiency was according to our expectations, reflecting the challenges we anticipated,” Interim CEO Ken Prepare dinner stated in a press release.
Wendy’s largely blamed its downside on a mix of robust comparisons, product choices and advertising. The corporate delayed an improved line of hen sandwiches into this 12 months. It additionally frontloaded its advertising in early 2025, leaving the corporate with little advertising towards the tip of the 12 months.
Comparisons have been troublesome, because the chain in contrast itself to a powerful quarter a 12 months in the past. However the chain’s same-store gross sales on a two-year foundation have been deteriorating for 3 years.
Prepare dinner on the corporate’s earnings name Friday blamed the issue on the chain’s concentrate on fast advertising wins and never on constructing the model over the long run. “We acquired away from what made Wendy’s nice,” he stated. “We targeted an excessive amount of on gross sales in a single day versus the model over time.”
On worth, he stated, “We swung the web page too far in direction of limited-time value promotions as a substitute of on a regular basis worth.” Wendy’s launched a brand new Biggie Offers Menu beginning at $4 in January as a part of that on a regular basis worth technique.
Executives additionally stated that the corporate will give franchisees “extra flexibility round working hours” within the morning daypart to allow operators to allocate sources “towards the best potential for progress” throughout completely different instances of the day. The flexibleness is designed to enhance franchisee profitability.
The “massive majority of the system goes to remain in breakfast,” Prepare dinner stated. “We’re not pulling out.”
However he known as it “a standard sense choice” that allows franchisees to focus hours on the place it might have the best worth for patrons and franchisee profitability. “We proceed to imagine that breakfast is a vital daypart for the U.S. system,” he stated.
Wendy’s is taking quite a few steps to show the model round, kicking off a plan final October known as “Venture Contemporary.” The corporate has introduced in former Taco Bell and Yum Manufacturers CEO Greg Creed to seek the advice of on advertising.
Creed oversaw a segmentation research to assist Wendy’s with advertising. The corporate now plans to focus on prospects for whom Wendy’s high quality positioning resonate essentially the most.
The corporate has taken steps to enhance operations at firm eating places, which outperformed the system by 310 foundation factors. Franchisees are beginning to implement many of those adjustments.
Wendy’s can also be investing in additional discipline groups to assist franchisees function their eating places.
The corporate additionally plans extra innovation this 12 months, beginning with a brand new Tacky Bacon Cheeseburger subsequent week. Wendy’s additionally plans upgraded hen sandwiches and a brand new Rooster Ranch Wrap.
UPDATE: This story has been up to date so as to add data from Wendy’s earnings name.
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