Wendy’s Faces Sales Slump, CEO Vacancy, and Tough Competition from McDonald’s

Wendy’s, the fast-food chain known for its “fresh, never frozen” burgers, is facing one of its toughest years in recent memory. The company’s stock has dropped nearly 50% in 2025, weighed down by slumping sales, leadership turnover, and increased competition from rivals McDonald’s and Burger King.

The chain is currently operating without a permanent CEO after its previous leader abruptly departed following just 18 months on the job. “We are not happy with our sales performance,” admitted Ken Cook, Wendy’s CFO and interim CEO, during an earnings call earlier this year.

Industrywide challenges have hit fast food hard, as consumers cut back on dining out. But while McDonald’s and Burger King have managed to rebound with new promotions and aggressive marketing, Wendy’s has continued to struggle. Analysts project that U.S. same-store sales fell 5.8% in the third quarter, following a 3.6% decline earlier this year.

To reverse its decline, Wendy’s recently launched “Project Fresh,” a comprehensive turnaround plan led by former Taco Bell CEO Greg Creed. The plan includes refreshed marketing, more digital upgrades, and stronger support for franchisees. “We’ve been working to put the company on the right path to create value for our franchisees, employees, and shareholders,” said Art Winkleback, chairman of Wendy’s board.

However, analysts remain skeptical. BTIG’s Peter Saleh argues the problems go deeper than marketing, pointing to outdated restaurants and long-delayed digital upgrades. “The biggest problem they have is not their food — it’s that their restaurants are old and tired,” Saleh told CNN.

Despite the challenges, Wendy’s continues to innovate with its menu, relaunching its chicken tenders and updating its Frosty flavors. Still, the company faces mounting pressure to show results when it reports earnings on November 7.

Credit: CNN Newsource

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