Overview of Wendy’s Performance Challenges

Wendy's experienced a significant sales decline during its fourth quarter of 2025 because its U.S. same-store sales dropped 11.3 % compared to the previous year which resulted in a larger decline than the initial COVID-19 pandemic period. The results disappointed investors because they demonstrated that the company's new strategies had not succeeded in attracting customers.

The Turnaround Strategy: Project Fresh

Wendy's leadership accelerated its "Project Fresh" turnaround plan which they first introduced during their 2025 operational assessment. The strategy aims to restore core business activities through enhanced marketing efforts and operational enhancements and restaurant footprint optimization across all company locations. Wendy's executives for 2026 described the year as a rebuilding year which focused on providing customers everyday value instead of using temporary promotional offers.

Wendy's under Project Fresh focuses on two main objectives which include operational enhancements and improved marketing that uses relevant customer messaging through social media. The brand has moved from offering short-term promotional deals to implementing Biggie Deals which provide customers with consistent value through three fixed price options of $4, $6 and $8.

Menu Changes and Core Focus

Wendy's acknowledged that its new menu items failed to meet standards because they did not improve its main product, burgers. The company will introduce a Cheesy Bacon Cheeseburger and upgraded chicken sandwich selection in 2026 to solve this problem. The company plans to release a chicken snack wrap product which will appeal to customers who frequently visit quick-service restaurants. The company is implementing menu quality enhancements to create a better dining experience for all customers.

Operational Enhancements

The U-turn relies on operational adjustments as its main component. Wendy's is developing a new learning management system to increase training capacity while establishing stronger partnerships with franchisees to improve restaurant performance. The company demonstrates operational excellence through its company-owned stores which achieved better results than franchised stores during the late 2025 period.

The company has improved breakfast options by giving franchisees the choice to stop serving breakfast when it does not perform well, which enables them to direct their resources toward more profitable times of the day.

Outlook and Closing Thoughts

The leadership at Wendy's believes that the proposed changes will create performance stability while bringing back consumer relevance. The company expects flat global comparable sales in 2026 after a challenging 2025. The industry analysts watching the company will determine whether its return to essential business practices together with its value-based approach will help the company recover lost customers.