Dive Brief:
- Wendy’s is allowing more flexibility for franchisees operating during the morning daypart as demand for breakfast has waned in some markets, interim CEO Ken Cook said Friday during an earnings call. The shift is part of the chain’s Project Fresh initiative, which includes improving franchisee profitability.
- Franchisees will be able to instead focus on putting resources toward “the greatest potential for growth across daytime, evening and late night,” he said, adding that late-night was the best-performing daypart last year.
- Wendy’s continues to struggle with same-store sales in the U.S., which were down 11.3%, its steepest decline in roughly six years. The chain has reported the worst performance in the quarter so far among QSR burger brands.
Dive Insight:
Wendy’s isn’t the only chain seeing a shift in breakfast demand. McDonald’s CEO Chris Kempczinski noted during the chain’s Q3 2025 earnings call that breakfast “is the most economically sensitive daypart," and has been under pressure industrywide as it is an easy meal to skip or eat at home.
Wendy’s breakfast, which launched in 2019, had previously been a significant driver of sales and traffic. In 2023, the chain saw strong profitability with its breakfast items even after offering discounts. A year later, the chain said it would spend $55 million on breakfast ads over two years to bolster its breakfast offerings.
“We continue to believe that breakfast is an important daypart in the U.S.,” Cook said regarding the future performance of the daypart.
Allowing for more flexibility in hours will allow for the morning daypart to “perform where it matters most, delivering greater value for customers while supporting franchisee profitability,” Cook said. Adjusting hours also allows restaurants to offer lunch earlier and alleviates the burden on the general manager.
“If you take some hours off of the morning daypart, it allows [general managers] to focus more on dinner and late night,” Cook said.
The majority of Wendy’s system will still offer breakfast, and Cook reiterated that the chain isn’t pulling out of the daypart. It is currently working with franchisees to determine what percentage of restaurants won’t offer breakfast and will share updates in the near future, he said.
A focus on other dayparts will be critical as the chain rolls out various menu items later this year. It already launched Biggie Deals in January to provide an expanded value platform. It will focus on offering “meaningful innovation” across its hamburgers and chicken offerings, including improved chicken sandwiches later this year, Cook said.
Wendy’s will also close underperforming locations or about 5% to 6% of the U.S. system in a bid to improve performance. In the fourth quarter, the chain closed 28 units with the remainder expected to close in the first half of 2026.
