Wendy’s Battles Slumping Sales, Leadership Gaps, and Fading Market Appeal

Once known for its upbeat red-haired mascot and “fresh, never frozen” promise, Wendy’s is now facing a harsh reality – the burger chain is struggling to find its footing amid declining sales, executive shakeups, and tough competition from industry giants.

Wendy’s stock has plunged by nearly 50% in 2025, and the company is currently without a permanent CEO following the abrupt departure of its last chief executive after just 18 months. Interim CEO and CFO Ken Cook admitted during the company’s August earnings call that leadership was dissatisfied with its recent performance. “We are not happy with our sales performance,” he said bluntly.

The downturn reflects broader challenges in the fast-food sector, where brands like McDonald’s and Burger King initially faced similar slowdowns earlier this year but later rebounded through stronger marketing and promotions. Wendy’s, however, continues to lag behind.

According to analysts, US sales at Wendy’s restaurants open at least a year are projected to drop 5.8% in the third quarter – a steeper decline than the 3.6% fall reported previously. “Investors are really focusing on when the company can get same-store sales trends moving back in the right direction, and we’ve seen little progress,” said Jim Salera, an analyst at Stephens.

To address the slump, Wendy’s has unveiled a turnaround plan dubbed “Project Fresh,” led by former Taco Bell CEO Greg Creed. The initiative aims to re-energize the brand through new marketing, technology upgrades such as digital menu boards, and support for franchisees to improve profitability.

Wendy’s board chairman Art Winkleback said the company remains “dissatisfied with its current valuation” and is determined to “create value for franchisees, employees, and shareholders.”

Still, analysts are skeptical. Peter Saleh of BTIG argues that the new strategy doesn’t tackle the chain’s deeper issues, which he says date back more than a decade to an incomplete restaurant remodeling effort. “The biggest problem Wendy’s has is not their food,” Saleh said. “It’s that their restaurants are old and tired.”

While Wendy’s continues to promote new menu items – including revamped chicken tenders and seasonal Frosty flavors – its challenge lies in reconnecting with price-conscious consumers. McDonald’s has successfully captured more of this audience by emphasizing value-driven deals, while Wendy’s remains positioned as a higher-quality, mid-tier brand.

Investors and customers alike are now waiting for Wendy’s November 7 earnings call, where more details about the company’s comeback strategy are expected to be revealed.