Burger King and Wendy’s signage.
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Burger King has overtaken Wendy’s as the second-largest burger chain in the U.S. by systemwide sales, retaking its crown six years after losing it to the rival chain.
The change in positions follows the two companies’ diverging results over the past two years.
Wendy’s has reported shrinking U.S. same-store sales for six straight quarters. Its domestic same-store sales slipped 7% in its latest quarter, the company reported on Friday.
Meanwhile, Burger King has been embarking on a turnaround and has seen its domestic same-store sales rise over the past five quarters; the Restaurant Brands International chain on Thursday reported U.S. same-store sales growth of 8.5% for its second quarter.
McDonald’s holds onto its spot as the number one burger chain, with a significant lead. Although the company only reports its systemwide sales on a global basis, it held about 48% of the U.S. burger market share in 2024, according to Barclays. For comparison, at that time, Wendy’s had an 11.4% share of the market, while Burger King had a 10% hold.
Wendy’s initially overtook Burger King through the success of its nationwide breakfast launch. But staying number two has been a rocky road.
Both Wendy’s and Burger King had to navigate the Covid-19 pandemic and the subsequent supply chain issues that led to soaring food costs. Then came the consumer pushback against rising menu prices and a pullback in restaurant spending.
In late 2022, Restaurant Brands announced a turnaround plan for Burger King’s U.S. business after a year of lackluster sales. The strategy has focused on improving its food quality, investing in marketing and remodeling restaurants.
While Burger King tried to find its footing, Wendy’s was dealing with a revolving door of chief executives at a time when consumers were growing even more value conscious and beef costs were soaring.
In 2024, Wendy’s longtime CEO Todd Penegor retired after eight years in the role. PepsiCo executive Kirk Tanner succeeded him but left after a little more than a year to lead Hershey’s. CFO Ken Cook took over as interim CEO until Wendy’s tapped former Potbelly CEO Bob Wright as his permanent replacement in May.
“Our quality differentiation has eroded, our value proposition has weakened, and we have not consistently delivered the experience customers expect from Wendy’s,” Wright said on the company’s earnings conference call on Friday. “These issues have weighed on traffic and created pressure on the restaurant economic model, which is the heartbeat of this business, and this is reflected in our latest results.”
Now Wendy’s is planning to embark on its own turnaround to revive sales, meaning that Burger King can’t rest on its laurels.
