The quick-service burger brand expects same-store sales to be positive for the rest of the year
The Wendy’s Co. saw consumers pull back in the first few weeks of 2025, executives said Thursday.
Leaders at the Dublin, Ohio-based quick-service concept, which released earnings for the fourth quarter ended Dec. 29, said the first quarter was expected to be the low point for same-store sales forthe year.
“We've started the year facing some overall industry traffic headwinds exacerbated by significant weather events across the country,” Ken Cook, Wendy’s chief financial officer, said. “The good news is we do expect Q1 to be the trough. We expect our growth rate to improve as we move throughout the year.”
Cook said he expected industry traffic and Wendy’s innovations to drive sales in the rest of the year. In the fourth quarter, Wendy’s same-store sales growth was 4.3%; for the full year, systemwide same-store sales growth was 1.5%.
Kirk Tanner, Wendy’s CEO, added that the first quarter was “a soft start, a lot driven by weather” as well as consumer pressure.
“We see that improving in the balance of the year,” Tanner said. “We think that the industry will continue to improve. And look, our attitude is to always win in the marketplace. So, winning in the marketplace against the category is priority No. 1.”
Expansion of a Wendy’s digital menu boards, which are now at more than 300 company and franchisee locations, also allow the company to use voice-enabled artificial intelligence to take orders, which it has deployed at nearly 100 locations.
“We are pleased with the results we are seeing in improving accuracy and driving labor efficiency,” Tanner said. The company plans to expand the program, called “Fresh AI,” to 500 to 600 locations this year.
“The experience is exceptional,” he said. “What I would tell you is it drives sales as well. It gives customers the opportunity to build their orders. It understands what to ask for, and the accuracy definitely is improving.”
Tanner said Wendy’s will also continue to emphasize innovation in its breakfast daypart, but it may pull back on advertising the occasion.
“We expect breakfast to be growing faster than the rest of our business,” he said. “It will be a tailwind for us in 2025 and beyond.”
For the fourth quarter ended Dec. 29, Wendy’s net income rose to $47.5 million, or 23 cents a share, from $46.9 million, or 23 cents a share, in the prior-year-period. Revenues rose to $574.3 million from $540.7 million in the same quarter last year.
Wendy’s, founded in 1969, has more than 7,000 restaurants worldwide.
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