While Wendy’s ranks second behind McDonald’s (at least in America’s fast-food burger wars), the chain has struggled in recent years.
Sales in the chain’s domestic market were down, something Chief Financial Officer Suzanne Thuerk tried to explain during Wendy’s fourth-quarter earnings call.
“For the fourth quarter, global system-wide sales were down 8.3% on a constant currency basis and U.S. same-store sales were down 11.3% due to a significant decline in marketing spend and our poor performance with SpongeBob SquarePants last year,” she said.
She noted that Wendy’s restaurants are seeing fewer customers.
“The decline in U.S. same-store sales was driven by lower foot traffic, partially offset by an increase in average check,” she added.
In the fast-food industry, an 11.3% decline in same-store sales is considered serious and indicates more than just weak traffic. Even during challenging times, same-store sales at established chains typically fluctuate in the low single-digit range.
Double-digit declines indicate significant reductions in customer visits that cannot be easily offset by pricing or promotions, often forcing operators to rethink store floor space, hours and dayparting strategies to protect franchisee profitability.
Interim CEO Ken Cook said on a conference call that the company plans to close 5%-6% of the 5,831 U.S. restaurants listed on its website, or about 292 to 350 underperforming restaurants, MarketWatch reported. Analysts said the move reflects broader challenges in U.S. same-store sales and competitive pressure.
For an established fast-food chain like Wendy’s, continued double-digit same-store sales declines leave few strategic options. When traffic erosion persists, closing underperforming stores is no longer about belt-tightening but about preserving franchisee economics and stabilizing the broader system.
Wendy’s also plans to scale back its breakfast program.
Wendy’s breakfast launched in 2020, just as the entire country was forced into lockdown due to the coronavirus pandemic. The chain ran an advertising campaign and promotional partners including ESPN promoted its breakfast items while many restaurants were closed and people practiced social distancing.
Wendy’s Co. launched breakfast systemwide on March 2 but quickly became mired in the coronavirus pandemic, which was declared a pandemic by the World Health Organization on March 11.
Part of the fast-food breakfast model relies on people driving to work and either stopping for a quick meal or passing through a drive-thru. During the height of the pandemic lockdown, fewer people did so.
Still, the former Wendy’s chief marketing officer said early results are good, Nation’s Restaurant News reports.
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“We’ve been in this space for less than a year, and we’re going from ‘nobody who eats breakfast’ to ‘people who eat breakfast’ against competitors who have been in the market for 50 years,” Loredo said.
It’s a thinly veiled dig at McDonald’s, which has long been the fast-food breakfast leader.
Now, the chain admits breakfast isn’t quite there yet and plans to scale back.
Wendy’s is in the breakfast area for good reason.
According to CNBC, “Before the pandemic, breakfast was the only meal that drew more and more customers to fast-food chains. Lunch and dinner traffic is shrinking as consumers choose healthier options or cook at home. For Wendy’s, adding breakfast allows the burger chain to attract new sales without cannibalizing lunch, snack or dinner traffic.”
Now, six years later, the company admits it is having trouble serving breakfast in some stores.
Cook made it clear that Wendy’s decided to scale back breakfast, not abandon it.
“Breakfast continues to be an important day for the system. Much of the system will remain in breakfast. We’re not exiting. We’re working with the franchisees now to finalize those exact numbers and we’ll share updates as we go along,” he told Guggenheim Securities analyst Gregory Frankfurter on a fourth-quarter earnings call.
Wendy’s plans to reduce breakfast offerings. Shutterstock ·Shutterstock
Cook made it clear that the chain will address breakfast issues on a restaurant-by-restaurant basis.
“We are also working with our franchisees to better adjust their operating hours to meet demand, particularly in the morning hours. While many restaurants are performing well in breakfast, we recognize that this may not apply to every restaurant as customer dynamics in some markets do not support a thriving breakfast business,” he shared.
The interim CEO believes the changes are to accommodate work hours at each location.
“To enhance franchisee profitability, we are providing greater flexibility in morning opening hours, which allows them to reallocate resources to maximize growth potential during the day, evening and late night hours,” he said.
In some cases, that means some locations are eliminating breakfast and others are shortening their morning hours.
“This allows the morning time slot to play its most important role, delivering greater value to customers while supporting franchisee profitability, and we continue to believe breakfast is an important time slot for the U.S. system,” Cook added.
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Quick Service Restaurants and Quick Service Restaurants (QSR) Revenue: The U.S. industry is valued at approx. US$254.11 billion in 2024 Grand View Research reports that modest growth is expected to continue.
American breakfast restaurants and eateries (Includes many breakfast-focused, quick-service breakfast places): Industry Revenues US$15.6 billion in 2025According to ibis World.
American breakfast takeout market (Includes grab-and-go fast food breakfast, QSR food, coffee and sandwiches): Estimated Approximately US$38.8 billion in 2025grow into Will reach US$73.2 billion by 2035share future market insights.
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This article was originally published by TheStreet on February 15, 2026, and first appeared in the Retail section. Click here to add TheStreet as your preferred source.
