Sponsored By

How Wendy's plans to take over every daypartHow Wendy's plans to take over every daypart

Holly Petre, Assistant Digital Editor

August 10, 2023

 

Wendy’s reported Q2 results Wednesday, including systemwide sales growth of 6.9% led by a 12.7% increase in the company’s international business. In the U.S., systemwide sales were up 6.1%, while domestic same-store sales were up 5.1% on the quarter.

U.S. company-owned restaurant margins improved to 17.3% of sales, versus 15% a year ago, driven by higher average check. The increase was partially offset by higher labor and commodity costs, as well as customer count declines. During an earnings call Wednesday morning, CEO Todd Penegor touted the company’s “significant profit expansion,” as well as stronger cash flow.

No surprise, both the morning and late-night dayparts were in the spotlight during the call, as they were during the company’s last earnings call in May. On the breakfast side, Penegor said Wendy’s experienced the highest quarterly breakfast sales volumes of all time, supported by its $3 croissant promotion launched in late March. The daypart experienced mid-single-digit sales growth and the company expects this momentum to continue with its new Frosty Cream Cold Brew and “additional menu innovations launching soon.” Rumors have swirled that those innovations could include a pumpkin spice-flavored lineup. Penegor is bullish about the breakfast daypart throughout the rest of this year because of these innovations, as well as more consistent promotional activity aimed at driving trial and repeat visits.

Bookending that breakfast business is Wendy’s late-night daypart. The company recently began advertising its late-night offerings for the first time in four years and 90% of its restaurants are now open until at least midnight. The daypart experienced double-digit sales growth last quarter.

About the Author

Holly Petre

Assistant Digital Editor

Holly Petre is a digital editor for Nation’s Restaurant News as well as the host of NRN’s podcast, Extra Serving, and producer for Informa Restaurant and Food Group’s other three podcasts, One On One by Food Management, Off the Shelf with SN and In the Kitchen with Bret Thorn. Holly holds a Bachelor of Fine Arts with a concentration in Sculpture, fibers and Material Studies and Ceramics from the School of the Art Institute of Chicago. A native New Yorker, Holly enjoys her place on staff as the resident pop-culture expert and millennial with a sassy attitude and great sense of style.

Holly Petre’s work on Nation’s Restaurant News and Restaurant Hospitality often covers marketing and trends, either aimed-at or examined-through the millennial mindset. Holly is responsible for introducing TikTok and Twitch to NRN and RH readers as well as explaining terms like “Karen” to staff and readers alike. She also spends her time on staff trying not to make every headline a pun.

Holly Petre hasn’t spoken at any events or on panels, but she is readily available with a killer shoe wardrobe and several witty quips.

 

Subscribe Nation's Restaurant News Newsletters
Get the latest breaking news in the industry, analysis, research, recipes, consumer trends, the latest products and more.