Trouble at Wendy's: Lost second place in US sales to Burger King

Burger King has overtaken Wendy's as the second-largest hamburger chain in the US by sales, six years after losing the title to its rival. The shift comes after both companies posted quite different results over the last two years, according to a report by CNBC.

Wendy's reported a decline in same-store sales volume for six consecutive quarters, with a 7% drop in the last quarter alone. At the same time, Burger King saw a positive trend, with same-store sales rising for five consecutive quarters. Restaurant Brands International, which owns Burger King, reported yesterday (Friday) an 8.5% increase in sales for the second quarter.

McDonald's continues to hold the top spot among hamburger chains by a significant margin. As of 2024, it held a 48% market share in the US, compared to 11.4% for Wendy's and 10% for Burger King, according to the consulting firm Barclays. Wendy's had previously outperformed Burger King thanks to the success of its breakfast menu, but it failed to maintain the second-place position.

Both chains had to survive the COVID-19 pandemic and the subsequent supply chain disruptions that drove up product prices. Then came the consumer reaction to rising prices and increased corporate costs. In late 2022, Restaurant Brands announced a business turnaround plan for Burger King after a year of weak sales, with a strategy to improve food quality, invest in marketing, and redesign restaurants.

Meanwhile, Wendy's dealt with several CEO changes as consumers became more cautious with their spending and meat prices soared. In 2024, Wendy's long-time CEO Todd Penegor stepped down after eight years in the role. Kirk Tanner from PepsiCo replaced him, but left just over a year later to join Hershey's. Subsequently, CFO Ken Cook was appointed interim CEO until Wendy's hired Bob Wright, former CEO of Potbelly, for the CEO position in May.

"Our quality advantage has eroded, the value we offered has weakened, and we have not consistently delivered the consumer experience expected of Wendy's," Wright said on an investor call yesterday. "These issues have weakened sales and put pressure on the restaurant's economic model, which is the beating heart of the business, and this is reflected in the results we published."