Core Insights - The fast food industry, particularly burger chains, is facing significant challenges due to inflation and changing consumer spending habits [1][2] - Wendy's is experiencing a decline in foot traffic as consumers become more budget-conscious and shift towards casual dining options that are lowering prices [2][3] Industry Overview - Quick-service restaurants (QSRs) are heavily impacted by reduced consumer spending, with burger chains like Wendy's being particularly affected [2] - The competitive landscape is shifting as casual dining restaurants, such as Chili's, are cutting prices to attract cost-conscious consumers, which is eroding the market position of fast food chains [3][7] Wendy's Specifics - Wendy's has historically positioned itself as a quality-focused brand rather than a low-cost option, but this strategy is now backfiring as it faces increased competition from casual dining [3] - The company is under pressure from rising costs, with 91% of restaurants reporting food cost increases, leading to difficult decisions such as closing many locations by 2026 [5][6] - Wendy's system-wide sales for 2024 are projected to be $14.5 billion, reflecting a year-over-year increase of 3.1% [8]