Wendy’s Sales Aren’t Fresh Like the Ads Promise
Photo Caption: Guest seating at a recently redesigned Wendy's restaurant.
Skift Take
While Wendy's emphasis on value deals like its popular 4 for $4 menu option got customers into the restaurants, the company failed to convert those diners into higher-paying customers.
Wendy's had a lot to answer for on its third quarter earnings report, where the company revealed that same-store restaurant sales had declined for the first time in years. Analysts had estimated that same-store sales were going to be up by 1.7 percent in the quarter; actual sales declined by 0.2 percent.
The decline was widely pegged to Wendy's heavy promotional strategy (including the 4 for $4 menu deals and the dollar burgers). While customers were coming into the restaurants to take advantage of those deals, the company wasn't able to convert them into higher paying diners.
Given the sales volatility, Wendy's leadership did not reaffirm previous 2020 goals around sales gro
