Wendy’s reported disappointing same-store sales growth in the first quarter, citing industry headwinds and challenging weather conditions. The chain expects a decline in sales year-over-year, despite strong late-year results last year. CEO Kenneth Cook attributed the downturn to “significant weather events across the country” and lower-income consumers’ reduced frequency of dining out.
Wendy’s generated more sales during morning hours and saw an increase in digital orders, but these gains were not enough to offset industry-wide challenges. The chain outperformed rivals McDonald’s (-1.4%) and Burger King (1.5%), leading some to speculate that customers may have been deterred by McDonald’s recent E. coli incident.
In a bullish statement about the rest of 2025, Cook expressed confidence in achieving the chain’s 15th consecutive year of same-restaurant sales growth. The company also announced plans to send $325 million back to shareholders through dividends and share buybacks, driving its stock 2.5% higher on Thursday.
Industry analysts point to lower-income consumers’ reduced dining frequency as a contributing factor to industry-wide challenges. McDonald’s CEO Chris Kempczinski noted that the market remains “pretty muted.” Denny’s saw its same-store sales decline by 5% in February, and Burger King owner Restaurant Brands International faces similar challenges.
Wendy’s executives acknowledge the difficulties but believe Q1 will be the trough, with growth expected to improve throughout the year.
Source: https://www.restaurantbusinessonline.com/financing/wendys-many-other-chains-see-sales-turn-soft-so-far-2025