Wendy’s making a big change no one is talking about

While Wendy’s holds the number-two spot behind McDonald’s, at least in the United States’ fast-food burger battle, the chain has struggled mightily in recent years.

Sales have dropped in the chain’s home market, which CFO Suzanne Thuerk tried to explain during Wendy’s fourth-quarter earnings call.

“In the fourth quarter, global system-wide sales declined 8.3% on a constant currency basis, and U.S. same-restaurant sales declined 11.3%, driven by marketing spend, which was down significantly in addition to a tough comp with our SpongeBob collaboration in the prior year,” she said.

Wendy’s, she noted, simply had fewer customers.

“The decline in U.S. same-restaurant sales was driven by a decrease in traffic, partially offset by a higher average check,” she added.

In the fast-food industry, an 11.3% same-store sales decline is considered severe and signals more than routine traffic softness. Established chains typically see same-store sales fluctuate in the low single-digit range, even during challenging periods.

A double-digit decline points to a meaningful loss of customer visits that pricing or promotions cannot easily offset, often forcing operators to rethink store footprints, operating hours, and daypart strategies to protect franchisee profitability.

The company has plans to close 5%-6% of its 5,831 U.S. restaurant locations listed on its website, or about 292 to 350 underperforming units, Interim CEO Ken Cook shared during the call, a move analysts say reflects broader challenges in U.S. same-store sales and competitive pressure, according to MarketWatch.

For a mature fast-food chain like Wendy’s, sustained double-digit same-store sales declines leave few strategic options. When traffic erosion persists, closing underperforming locations becomes less about retrenchment and more about preserving franchisee economics and stabilizing the broader system.

Wendy’s also plans to scale back its breakfast initiative.

Wendy’s breakfast launched in 2020, right as the entire country was being forced into lockdown due to the Covid pandemic. The chain had advertising, and promotional partners including ESPN touting its morning meals at the same time many of its dining rooms were closed, and people were practicing social distancing.

The Wendy’s Co. launched breakfast systemwide March 2 and ran headlong into the Covid pandemic, which the World Health Organization declared on March 11.

Part of the fast-food breakfast model depends upon people driving to work and either stopping in for a quick meal, or going through the drive-thru. That was something fewer people did during the height of the pandemic lockdown period.

Despite that, former Wendy’s Chief Marketing Officer said the early results were good, according to remarks reported by Nation’s Restaurant News.

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“Here we are less than a year into it, and we’re matching competitors who have been in the market for 50 years, literally going from a Breakfast Nobody to a Breakfast Somebody,” Loredo said.

Now, the chain has admitted that breakfast has not fully worked and plans to scale it back.

Wendy’s entered the breakfast space for sound reasons.

“Before the pandemic, breakfast was the only meal that drew a growing number of customers to fast-food chains. Lunch and dinner traffic was shrinking as consumers chose healthier options or made their meals at home. For Wendy’s, entering breakfast would allow the burger chain to attract new sales without cannibalizing its lunch, snack or dinner traffic,” CNBC reported.

Now, six years later, the company has admitted that some locations have struggled with breakfast.

Cook made it clear that Wendy’s has decided to scale back breakfast, not drop it.

“Breakfast remains an important daypart for the system. The large majority of the system is going to stay in breakfast. We’re not pulling out. We’re working with franchisees right now to finalize those exact numbers, and we’ll share updates as we go along,” he told Guggenheim Securities analyst Gregory Francfort during the Q4 earnings call.

Cook made it clear that the chain would address breakfast on a restaurant-by-restaurant basis.

“We are also working with franchisees to better align operating hours to demand, particularly for the morning daypart. While many restaurants perform well at breakfast, we recognize it may not work in every restaurant as certain markets have customer dynamics that do not support a thriving breakfast business,” he shared.

The interim CEO views the changes as leaning into the dayparts that work for each location.

“To strengthen franchisee profitability, we’re providing more flexibility around operating hours for the morning daypart, which allows them to reallocate resources towards the greatest potential for growth across daytime, evening and late-night occasions,” he said.

In some cases, that will mean certain locations dropping breakfast, while others will trim their morning hours.

“This positions the morning daypart to perform where it matters most, delivering greater value for customers while supporting franchisee profitability, and we continue to believe that breakfast is an important daypart for the U.S. system,” Cook added.

• Fast-food & quick service restaurants (QSR) revenue: The U.S. industry was valued at approximately $254.11 billion in 2024 with continued moderate growth expected, reported Grand View Research.

• Breakfast restaurants & diners in the U.S. (includes many breakfast-oriented and quick-service breakfast venues): Industry revenue was $15.6 billion in 2025, according to IBIS World.

• U.S. breakfast takeout market (which encompasses on-the-go fast-food breakfast meals, QSR items, coffee, and sandwiches): Projected to be about $38.8 billion in 2025, growing toward $73.2 billion by 2035, shared Future Market Insights.

Related: Burger King brings back fan-favorite Whopper

This story was originally published by TheStreet on Feb 15, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.