These 5 Fast-Food Chains Are 'Struggling' as Sales Slump in 2025
It hasn't been the best start to the year for fast-food chains, with restaurants such as Wendy's reporting soft sales so far in 2025. A combination of sky-high prices and low value for money is keeping customers away from these restaurants, and even when they do go, people are spending less. Fast-food has gone from a cheap option to a luxury item, resulting in people staying home. "Prices on basic items like McDonald's cheeseburgers and Chick-fil-A nuggets have risen as much as 200% in less than five years with dire consequences for the lower- and middle-class families who make up much of the fast food customer base," says Dan O'Donnell of the free market think tank the MacIver Institute. Here are four fast-food chains struggling as sales slump and profits dip.
Wendy's
Wendy's had good momentum last quarter which has slowed down in 2025. The company believes bad weather is partly to blame for people not wanting to venture out for a meal. "We do expect [same-store sales] to be down year-over-year in the first quarter," CFO Kenneth Cook told analysts on Thursday, via Restaurant Business. "We've started the year facing some overall industry headwinds, exacerbated by significant weather events across the country." Customers complain the chain is simply too expensive now. "I went my local Wendy's yesterday for the first time in a year or so. 2 double Baconators & 2 medium fries was $25.00. I like Baconators, but that's just too much for fast food. I won't be back. Bye Dave," one Redditor said.
McDonald's
High prices and a listeria outbreak negatively impacted McDonald's sales, which were down 1.4% according to fourth-quarter earnings reports. "Our performance in 2024 did not meet our expectations," McDonald's CEO Chris Kempczinski said on a call with analysts. "It was a big year, and at times it felt like McDonald's was part of almost every major news story, reflecting the reach and visibility of our brand." The steep rise in prices has fans outraged. "Me and my mom went to McDonald's for breakfast today and got 2 sausage mcgriddles and 2 ice coffees, It ended up being 25 dollars WHAT! I remember the ice coffees used to be $2.17 for a large now there close to 4 dollars. But cmon 25 dollars for McDonald's," one Redditor ranted.
Burger King
Burger King is keeping optimistic with a 1.5% rise in profits. "More of our restaurants are owned by stronger franchisees now who are simply better at running their stores, and we're seeing that play through both in the top-line and the bottom-line for those restaurant owners," CEO Josh Kobza says, via QSR Magazine. "There remains a lot that can be done there." Kobza also says bad weather could impact sales. "There's always a lot of noise, especially when you're in the early part of Q1 with weather, and it's a little bit hard to get a read," he said.
Denny's
Sales for diner chain Denny's is down 5%, and the company may be shutting down 30 more locations than previously planned. Despite this, the chain has faith things will improve in 2025. Customers have long mourned the hike in prices, saying the chain just doesn't offer the same value for money. "I can buy an 8oz sirloin with a baked potato and a salad at Texas Roadhouse for the same price Dennys is charging for the Moons over my Hammy omelette," one Redditor said.
Red Lobster
Red Lobster filed for bankruptcy in May, joining a growing list of sit-down restaurant chains struggling to stay afloat in 2025. The company cited rising labor costs, inflation-weary consumers cutting back on dining out, and financial mismanagement under private-equity ownership as key reasons for its downfall. Analysts warn that aggressive discounting, such as Red Lobster's ill-fated all-you-can-eat shrimp promotion, further strained the chain's bottom line.
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