An exterior view of a Wendy’s fast food restaurant in Bloomsburg, Pennsylvania, on May 19, 2024.
Paul Weaver | SOPA images | Getty Images
Wendy’s will offer a $3 breakfast combo menu starting Monday, as restaurant chains look for new ways to boost sales as consumers pull back on dining out.
The offering includes a small portion of seasoned potatoes and the choice of a bacon, egg and cheese English muffin or a sausage, egg and cheese English muffin, the fast food chain said.
The promotion comes as a rival to Wendy MC Donalds is planning a similar but inexpensive meal option to drive traffic. Last week, CNBC reported that the fast food giant’s $5 meal deal would be available in stores for one month only, starting June 25.
Consumers have become more selective about how they spend their money, and some restaurants are seeing a long-anticipated decline in consumer spending. Other fast-casual chains posted strong sales despite higher prices.
As inflation continues, companies that serve lower-income consumers face a unique challenge in attracting customers.
Wendy’s reported earlier this month that first-quarter sales rose a modest 1.1% to $534.8 million. Global same-restaurant sales rose just 0.9% in the quarter.
McDonald’s missed first-quarter profit expectations last month. Although higher prices boosted the chain’s sales, they deterred some low-income customers. Chief Financial Officer Ian Borden said the company had adopted a “street fight mentality” to compete for budget-conscious guests.
Owner of KFC, Pizza Hut and Taco Bell Delicious brands Earlier this month, the company also released a disappointing earnings report as revenue fell short of Wall Street estimates. The company cited same-store sales declines at KFC and Pizza Hut.
Don’t miss these exclusives from CNBC PRO
Source link
2024-05-20 20:20:07
www.cnbc.com
