Coronavirus might have shut down some industries, but it’s boosted others, like certain fast-food companies. In fact, Wendy’s breakfast is selling better than ever. Read on to find out why…
Big Difference In Sales
Without a doubt, this past year has been a hectic nightmare for many. From Denny’s to Starbucks, many breakfast joints saw a decrease in takeout, as office workers and students started to eat at home. Meanwhile, cereals companies like General Mills and Kellogg saw a spike in popularity. However, just as it seemed that fast food was poised to take a COVID hit, restaurants like Taco Bell had to start opening their places later and cut breakfast from the menu. That helped cut labor costs, and Taco Bell is now looking great to make a comeback.
However, while places like Starbucks saw nearly 10% of their sales drop off, Wendy’s came out with surprising news. Not only was their breakfast doing well, but it had become even more popular during the lockdown. Even more surprising? They came out with the menu less than two months before coronavirus hit! Let’s see how they did it…
Specifically, Wendy’s has seen their breakfast sales increase 6% over the pandemic. What’s with all the hype, though? Well, experts believe a couple of things led to Wendy’s incredible breakfast quarter.
First, as mentioned, Taco Bell pulled back on hours and cut breakfast. Likewise, many other fast food places cut workers in the morning, increasing waits. This likely sent many customers right into the arm of Wendy’s. Second, Wendy’s spent quite a bit reminding everyone they had a new alternative to other fast-food breakfasts. This past quarter the company spent $6.2 million on breakfast ads alone! While CEO Todd Penegor would not confirm the biggest sellers, like the Frosty-ccino and Breakfast Baconator, he did remain hopeful that Wendy’s breakfast will continue to grow. “We are confident that we can continue to grow this business into the future as more and more people fall back into their daily routines,” he said.
Keeping Up With Wendy’s
Meanwhile, Wendy’s breakfast triumph also has Wall Street eagerly eyeing the fast food company. In fact, the company’s up more than 6% since last year! While their market value is up to $5 billion, they plan to remake some of the operations, costing them around $8 million in total. That includes testing out drive-thru only locations that they think will only continue to grow in popularity in the future
Behind the scenes, there’s also rumblings that Wendy’s will soon change its offices up, downsizing considerably. Apparently, many of the company’s teams have only grown stronger since working from home. So expect to see even more shakeups soon at Wendy’s headquarters!