Dive Brief:
- As part of its 2025 strategic initiatives, Wendy’s will expand further in the fast-growing categories of chicken and beverages, enhance its value-based Biggie Bag platform and increase engagement with loyalty members, CEO Kirk Tanner said Thursday during an earnings call.
- Additionally, the chain will invest in breakfast menu innovation to drive ongoing sales momentum.
- Wendy’s ended the year with 4.1% same-store sales growth in the U.S. and 0.9% same-store sales growth during the fourth quarter, with the chain outpacing the QSR burger category in traffic and dollar growth, Tanner said.
Dive Insight:
Menu innovation was a particularly strong driver of traffic and sales growth for Wendy’s in Q4. During the period, its partnership with Paramount to celebrate the 25th anniversary of SpongeBob SquarePants — which included the launch of a Krabby Patty — drove a 20% same-store sales lift at its peak and increased average check. Other LTOs, including its Salted Carmel Frosty and the Mushroom Bacon Burger, also helped drive sales. Last year, Wendy’s added Saucy Nuggets to its core menu to expand its chicken category.
Breakfast sales grew 6% during the quarter and will serve as an additional tailwind for growth this year, Tanner said, adding that the chain will continue to devote a higher share of total advertising dollars to breakfast than the percentage of sales the daypart accounts for. The next stage of breakfast will be menu innovation, and the chain will share details about this plan later this year, he said.
“[Breakfast] still remains an important strategy for Wendy’s, and we have a long way to go to reach our full potential,” Tanner said.
Wendy's U.S. same-store sales growth
In addition to menu innovation, the chain will also expand its value offerings, Tanner said. Last year, Wendy’s didn’t make many big moves with meal deals, as seen at competitors like Burger King and McDonald’s. The chain started this year with a two-for-$7 meal deal with 16 different menu items to combine.
“We have plans to further strengthen our value leadership position through continuous innovation and the strategic expansion of our Biggie Bag platform,” Tanner said. The $5 Biggie Bag, which has been on the menu since 2019, offers a choice of Crispy Chicken Sandwich or Junior Bacon Cheeseburger and includes small fries, four-piece nuggets and a small drink.
Value remains top of mind for customers, Tanner said, adding that Wendy’s already has a strong value platform with “great brand equity.” The company will lean on that brand equity and elevate the experience “like no one can in the business.”
It will also drive value through its loyalty platform, which reached 46 million members, up 25% from a year ago, Tanner said.
“We will deepen connections with our loyalty members and attract new ones by offering exclusive, limited time, unbeatable deals available only through the Wendy’s app,” Tanner said.
