Wendy’s has cut its sales outlook due to economic uncertainty, competition, and softer consumer demand. The company expects full-year global sales to decline between 3% and 5%, compared to previous projections of flat or down 2%. Lower-income consumers, who tend to frequent fast-food chains, are feeling the pressure.
According to a Bankrate study, households earning less than $50,000 per year plan to spend less on dining out in 2025. Wendy’s is coping with this trend by offering value meals, such as its Biggie Bag for $5, which includes a junior bacon cheeseburger, small fries, four-piece chicken nuggets, and a soft drink.
Despite seeing improved sales in May and June due to new Frosty offerings, overall demand recovered more slowly than expected. Wendy’s executives attribute this to rising inflation and consumer uncertainty. The company plans to use new data analytics capabilities to evaluate its core menu pricing.
The trend of skipping breakfast for meals at home may be a contributing factor to softer consumer demand. Cook noted that when consumers are uncertain about their finances, they often choose to eat at home first, with breakfast being the meal they skip most frequently. McDonald’s has reversed this trend by expanding its value menu, which has attracted some consumers back to its stores.
Source: https://www.cbsnews.com/news/wendys-low-income-consumers-mcdonalds