7 Major Changes Underway at Wendy's
The summer of fast-food meal deals is in full swing. All of the industry's heaviest hitters have rolled out new value meals and other more affordable menu options this year as a means of luring back budget-conscious diners. McDonald's and Burger King just introduced $5 meal deals, while Taco Bell and Starbucks have announced similarly priced new value meals, ranging from $5 to $7.
Wendy's, on the other hand, has actually been offering its $5 Biggie Bag (featuring a burger, nuggets, fries, and a drink) for years at this point.
Of course, that hasn't stopped the iconic burger brand with the unmistakable pigtailed logo from joining in on the savings frenzy. The fast-food chain began offering a 2 for $3 English Muffin breakfast deal earlier this summer, and now through September 30, customers can snag a Honey Butter Chicken Biscuit (aka Honey Buddy) for just $1 with any other purchase during breakfast hours via the Wendy's app.
Meanwhile, Wendy's just released its latest earnings report. It wasn't all good news, as the fast-food chain failed to meet Wall Street's revenue projections by about $7 million, and domestic same-store sales only increased by a meager 0.6% for the quarter, Quartz reported. Even so, there are also a number of bright spots suggesting business is trending in the right direction. For instance, global digital sales grew by an impressive 40% year-over-year, and Wendy's loyalty platform saw a 6% jump in members, now 42 million in total, according to Nation's Restaurant News.
Wendy's certainly isn't remaining stagnant or shunning away from innovation and change. The popular Ohio-based chain is undertaking numerous ambitious projects impacting virtually every aspect of its business model. Let's take a look at six major changes now underway at Wendy's.
Going all in on breakfast
Wendy's breakfast menu has proven to be a great success since launching in 2020, and the morning mealtime was another major bright spot in the chain's latest earnings report. According to Quartz, individual Wendy's locations currently have the potential to generate about $3,000 weekly ($156,000 yearly) from just breakfast sales alone—but moving forward executives would like to see that weekly number reach $6,000.
"Breakfast remains an incredibly important daypart," said Kirk Tanner, Wendy's CEO and president, during the Aug. 1 earnings call. "It is highly profitable, and we have not yet reached our potential."
Earlier this year, the chain announced it would be investing $55 million in North America on breakfast marketing efforts in 2024 and 2025, but now Wendy's has decided to extend its investment into 2026. Wendy's CEO Tanner reportedly called breakfast "a tailwind in our business right now" that is "growing faster than the rest of our business."
Bold new nugget flavors
Wendy's has long been known for its old-fashioned hamburgers, and while there's no use trying to fix what isn't broken, modern consumers have never been more keen on trying new flavors. Suffice to say, the classic menu items aren't going anywhere, but the burger chain has also been especially open-minded this year about incorporating exciting and unusual new menu items and flavor profiles.
Back in June, Wendy's rolled out an ambitious new nationwide chicken nugget promotion, offering customers their choice of seven distinct flavors of Saucy Nuggs: Honey BBQ, Garlic Parm, Buffalo, Spicy Honey BBQ, Spicy Garlic Parm, Spicy Buffalo, and Spicy Ghost Pepper.
Per the chain's press release, these bold new nuggs "are freshly tossed and sauced to create seven unique flavors and are served with a side of Ranch or Blue Cheese dipping sauce for the next-level Nugg experience."
John Li, Wendy's global vice president of culinary innovation, described these menu additions as "providing fans with a variety of chicken options that meet their lifestyles and palettes[sic]."
Fruity frosties
The beverage side of the menu has seen its fair share of noteworthy additions as well this year. Back in March, Wendy's announced the long-tenured Vanilla Frosty would temporarily be replaced by a new Orange Dreamsicle Frosty instead. Intended to evoke the same feelings and flavors as the classic ice cream bar, the Orange Dreamsicle Frosty boasted a combination of orange flavors and the original Vanilla Frosty.
Fast forward to June, and yet another new frosty flavor was introduced just as the Orange Dreamsicle variety was shelved. The Triple Berry Frosty is now available nationwide—but only for a limited time!—and features an enticing combination of raspberry, strawberry, and blackberry flavors that sounds perfect for a hot summer day.
Shifts in leadership
This year has also seen a number of noteworthy changes on Wendy's executive level. To start, former CEO Todd Penegor stepped down in February after serving in the position since 2016. Penegor is now the CEO of Papa Johns. Meanwhile, Kirk Tanner, a former Pepsi division CEO, is now the new president and CEO of Wendy's.
"I am honored to have the opportunity to lead this iconic brand at such a pivotal time in the industry. I am energized by the future potential and expansion opportunities for the business," Tanner said at the time of his hiring.
Additionally, Wendy's just created an entirely new position called "president U.S.," with the job being assumed by Abigail Pringle, a long-tenured Wendy's executive. Pringle originally joined the company in 2002 and most recently served as president international and chief development officer since 2019. Her new position will entail managing all of Wendy's U.S. operations, encompassing over 6,000 locations.
"It has been a career highlight to lead our global development and international business over the past five years. I know our U.S. business and franchisees exceptionally well and am confident that we still have much potential opportunity ahead for sales, profit, and restaurant growth," she commented, per a company press release.
Regarding international business, E.J. Wunsch, Wendy's chief legal officer since 2016, is now serving as the new president international, overseeing the global business across all 33 countries and U.S. territories with a Wendy's presence.
Openings & closings
The Wendy's brand enjoys a considerable footprint all over the United States and the world, boasting over 6,000 domestic locations and more than 1,200 international restaurants at the start of Q3 2024.
Interestingly, however, this year has very much been a mixed bag for the burger chain in terms of store closures and openings. The burger chain opened 99 new units during the first half of the year and estimates somewhere between 250 to 300 new restaurants will begin welcoming customers by the end of 2024.
All that sounds like a whole lot of good news, but Wendy's is also set to close just over 100 pre-existing locations this year as well. Many of those locations have already shut their doors, but CFO Gunther Plosch assured during an earnings call earlier this year that "nothing unusual is happening here. Everything went to plan."
Moving forward, it's clear Wendy's hopes to make a major splash internationally. The chain projects 30% of its future restaurant openings will be domestic, while the other 70% will be outside the U.S.
New initiatives
Last summer, Wendy's announced major plans for a new type of modern restaurant, dubbed "Global Next Gen." These eateries would be designed with efficiency and ease in mind with features like digital ordering kiosks and specialized shelving areas for delivery drivers and online customers to pick up their orders. A few have already opened their doors, and Wendy's expects to operate over 200 Global Next Gen locations by the end of the year.
Besides that massive project, the fast-food chain just announced a partnership that will bring clean, renewable solar energy to over 100 locations in New York, Illinois, and Massachusetts. Thanks to the collaboration with community solar provider Ampion Renewable Energy, participating restaurants will source anywhere from 30% to 100% of their energy needs from solar power—and they won't even need to install solar panels!
On the delivery front, one Wendy's restaurant in Christiansburg, Va., began testing out drone delivery services earlier this year. As part of a joint project with DoorDash and Wing, customers within the local delivery zone can choose "delivery by drone" as an option in the DoorDash app. The drone delivery should take no more than a half hour.
Partnerships & collaborations
In today's fast-paced consumer culture, more and more major brands are turning to collaborations with surprising partners in pursuit of organic buzz or a coveted viral moment. Wendy's has been no different in this regard, announcing a number of unexpected joint ventures this year.
In February Wendy's added a collaboration with Cinnabon to its breakfast menu. The Cinnabon Pull-Apart consists of mouth-watering warm, buttery dough bites baked with Cinnabon cinnamon and topped with Cinnabon's signature cream cheese frosting.
That same month also saw the burger brand become the official QSR breakfast partner of Major League Soccer's New York City Football Club. Per NYFC, the two organizations will "partner on enhancing the fan experience on match days and at Club events throughout the year," and Wendy's branding will be present in NYFC's stadium and online channels.
Perhaps Wendy's most unexpected collaboration comes in unison with the release of its new Saucy Nuggs. The burger chain has partnered with streetwear brand Lonely Ghost to release a limited edition merch collection featuring sweatpants, stickers, and a trucker hat.
"Our latest launch, Saucy Nuggs, was designed to satisfy Gen Z customers' cravings for a next-level nugget experience," Lindsay Radkoski, Wendy's U.S. chief marketing officer, said in a statement. "Our saucy collaboration with Lonely Ghost allows us to celebrate community and being better together with both brands' fans."
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