The chain said on Wednesday that sales at its restaurants in the United States that had been open for at least a year increased by 2% in 2020, thanks in large part to breakfast. CEO Todd Penegor said during a call from analysts that in the last three months of the year the meal represented about 7% of the chain’s sales, and is expected to rise to 10% by the end of 2022.
“We know that we are just scratching the surface of its potential,” he said.
Before the pandemic, breakfast competition was heating up. Fast food restaurants saw this as a rare opportunity for growth. But after requests to stay home started and many people stopped commuting to work, breakfast sales fell.
Wendy’s breakfast success can be partly attributed to the chain’s massive breakfast marketing effort just before the pandemic ended parts of the United States last year, leaving Wendy a priority for customers. And the people who ate Wendy’s breakfast during the pandemic were satisfied, said Penegor.
The Wendy’s breakfast menu has several options, including egg and cheese sandwiches on croissants or biscuits, seasoned potatoes, decadent frosty-cucumbers and even some chicken sandwiches, such as honey-butter chicken biscuit sandwiches.
These “fun and indulgent” items could be another reason for the good sales performance during the pandemic, said Amanda Topper, associate director of food services research at Mintel.
“Not only [are they] really attractive to young consumers, but just giving people something to cheer up, something new to try, “she said. Restaurants that sell items people can’t do at home have a better chance of attracting breakfast customers. during the pandemic, she said.
Wendy plans to maintain her momentum by investing more in marketing efforts. He also expects some people to treat their breakfast items like a mid-morning snack, which offers another sales opportunity. And once people start moving again, breakfast sales will naturally increase even more, according to Penegor.
Despite the increase in sales, Wendy’s (WEN) it lost Wall Street’s expectations for its fourth-quarter earnings and guidance for the entire 2021 year. Shares fell about 4% on Wednesday.
At Burger King stores in the United States, breakfast remained “significantly impacted” in the fourth quarter, said Jose Cil, CEO of Burger King’s parent company. Restaurant Brands International (QSR), last month. Burger King’s comparable sales fell about 8% in the quarter.
McDonald’s on the other hand said that breakfast performed well in the fourth quarter. In October, the company added three new bakery items to its McCafe line for the first time in almost a decade. These items provided “strong performance,” said McDonald’s CEO Chris Kempzcinski, during an analyst call in January. But he struggled with the meal in early 2020.
.Source
Related
