Two years ago, Wendy’s launched its breakfast menu across the United States to finally break through the barrier that it tried and failed nearly 4 decades ago, and then came the quarantine due to Covid-19.
Before the pandemic, breakfast was the only meal that attracted an increasing number of customers to fast food chains at a time when the momentum for lunch and dinner meals was diminishing as consumers moved towards healthier options or cooked their own meals at home.
Wendy’s has stuck to its plan despite the outbreak of the Corona virus, to now capture the third largest market share in the burger restaurant chains in the breakfast category, followed by Burger King of the giant Restaurant Brands International and at the forefront is McDonald’s, which dominates the market.
During the fourth quarter of 2021, breakfast sales made up about 8% of Wendy’s sales in the United States, but it still fell short of its goal of making up 10% of total sales. That there is still more growth ahead, as it expects an additional 10-20% growth in the breakfast division’s sales through 2022.
Burger King’s US business has struggled in recent years, and its poor performance in the breakfast division didn’t help, as during the fourth quarter, in-store sales rose just 1.8%, lagging the performance of rivals McDonald’s and Wendy’s.
The company’s shares rose by 7.6% over the past 12 months to reach a market value of $4.76 billion, and the stock recorded a weaker performance than the S&P 500 index, but it was better than the shares of McDonald’s and Restaurant Brands International.