Wendy’s struggles as the number-two fast-food burger chain in the US, with sales dropping significantly in 2025, CFO Suzanne Thuerk explained on their fourth-quarter earnings call. The chain saw an 8.3% decline in global sales and an 11.3% drop in US same-store sales due to fewer customers and decreased traffic.

The severe 11.3% same-store sales decline for Wendy’s signals significant challenges beyond routine traffic softness in the fast-food industry. To combat this, the company plans to close 5%-6% of its US locations to address broader competitive pressures and maintain franchisee profitability.

Wendy’s breakfast initiative launched in 2020 amidst the Covid-19 pandemic but struggled due to a decline in morning traffic. Despite initial success, the chain now plans to scale back its breakfast offerings after facing challenges with certain locations not supporting a thriving breakfast business.

Interim CEO Ken Cook announced Wendy’s decision to scale back breakfast, focusing on aligning operating hours to demand and providing franchisees with more flexibility to allocate resources where growth potential is highest. This strategy aims to enhance franchisee profitability while maintaining the importance of breakfast in the US system.

Read more at Yahoo Finance: Wendy’s making a big change no one is talking about