Inside Wendy’s Playbook to Win in a Shifting Market
The Wendy’s Company isn’t waiting for economic tailwinds to right the ship. Faced with a tougher consumer environment, slowing domestic sales, and mounting pressure across the quick-service restaurant (QSR) industry, the company is doubling down on what it can control: elevating the customer experience, investing in innovation, and deploying smarter tech. With a focus on three strategic pillars, Wendy’s is betting that consistency, convenience, and craveability will help it win in the current market.
“We are taking a prudent approach to operating the business but remain fully committed to investing in our strategic initiatives to drive long-term growth despite the current macro environment,” said President and CEO Kirk Tanner in an earnings call with analysts “...Listening to the customer will always steer you in the right direction.”
Q1 2025 Earnings
Wendy's reported first-quarter earnings on May 2, covering the period ending March 30, 2025:
- Global same-restaurant sales declined 2.1%, contributing to a 1.1% drop in global system sales.
- U.S. same-restaurant sales fell 2.8%, and systemwide sales dropped 2.6%.
- Internationally, same-restaurant sales rose 2.3%, and systemwide sales grew 8.9%.
- The company forecasts full-year global systemwide sales to be flat or down up to 2%.
- 74 new restaurants opened globally in Q1, including 28 in the U.S.
Facing Challenging Conditions Head-On
The potential effects of current global economic uncertainty on the QSR industry is evident in recent earnings reported by publicly traded restaurants including McDonald’s and Domino’s Pizza.
When asked about the mixed bag of earnings results from the top 10 QSR chains and its plan to take back share, Tanner said, “Winning in the marketplace in challenging conditions is what we’re focused on ... Our expectation is to win in the marketplace. ”
Wendy’s playbook is to execute three strategic pillars:
- Deliver Fresh, Craveable Food – including core menu items, innovation, strategic collaborations, and value.
- Enhance the Customer Experience – through personalization, digital upgrades, and hospitality.
- Accelerate Global Growth – focusing on net new restaurant openings.
Doubling Down on Experience and Tech
To deliver an exceptional and consistent guest experience, Wendy’s is increasing its field support and coaching.
“Our goal is to ensure we’re consistently delivering an excellent experience for all customers, no matter which restaurant they visit,” said Tanner. Field visits have doubled, and coaching and training is being prioritized across the system.
Technology is a central part of the effort. Wendy’s is continuing to roll out digital menu boards and FreshAi, its proprietary voice AI drive-thru assistant developed with Google Cloud. Since is 2021 pilot, FreshAi is currently in 150+ restaurants across 24 states and is slated to reach 500 locations by year’s end. The tool now supports Spanish-language ordering and aims to improve speed and accuracy, with additional enhancements on the horizon.
Mobile App Engagement
Behind the scenes, Wendy’s continued to enhance personalization features, including the ability to deliver each customer digital messaging that is most relevant to them.
These investments are paying off, driving improvements across app engagement metrics. In Q1 the brand’s conversion rate “reached an all-time high” and digital mix surpassed a record 20+% of total sales, Tanner added.
In Q1 Wendy’s added gamification to the mobile app, increasing stickiness and “giving customers a compelling reason to engage with the brand beyond the point of purchase,” Tanner said.
Getting Orders Right, Every Time
Order accuracy remains the top driver of customer satisfaction, and Wendy’s is attacking it with technology. A recent pilot includes a two-pronged approach: sandwich label printers and smart delivery scales. Both tools are designed to ensure that every item is customized and every order is complete.
“In restaurants that utilize these tools, order accuracy has significantly improved,” Tanner noted. “...We're already making progress, taking the right steps to reach our full potential.”
New Promotions
Wendy’s is also turning up the volume on value and menu innovation, leaning into a 100 Days of Summer promotion, new Frosty swirls and fusions, and an upcoming collaboration with chip brand Takis. These efforts are designed to connect with consumer passion points and deliver on both excitement and affordability.
“Despite the uncertain macro environment, we remain focused on controlling what we can control,” said Wendy’s CFO Ken Cook during the call with analysts. “We believe that our programming for the remainder of the year will give customers compelling reasons to choose Wendy’s and allow us to win in the marketplace.”