Core Insights - Wendy's is facing significant challenges in the fast-food burger market, particularly in the U.S., where it holds the number-two position behind McDonald's [1] - The company reported a global system-wide sales decline of 8.3% on a constant currency basis and an 11.3% decline in U.S. same-restaurant sales, attributed to reduced marketing spend and decreased customer traffic [2] - The severe 11.3% decline in same-store sales indicates a substantial loss of customer visits, prompting the need for strategic reassessment of store operations [3] Sales Performance - The decline in U.S. same-restaurant sales was primarily driven by decreased customer traffic, although there was a partial offset from a higher average check [2] - An 11.3% same-store sales decline is considered severe in the fast-food industry, typically indicating more than just routine traffic issues [3] Strategic Responses - Wendy's plans to close 5%-6% of its 5,831 U.S. restaurant locations, equating to approximately 292 to 350 underperforming units, as a response to broader challenges in same-store sales and competitive pressures [4] - The company is also scaling back its breakfast initiative, which was launched during the pandemic but has not met expectations due to changing consumer behaviors [5][6] Breakfast Initiative Challenges - Wendy's breakfast launch coincided with the onset of the Covid pandemic, which limited customer access to dining options and affected the breakfast model reliant on morning traffic [6][7] - The pandemic significantly impacted the fast-food breakfast model, as fewer people were commuting to work and stopping for meals [7]