Wendy’s Bets on ‘Project Fresh’ to Reverse U.S. Sales Declines

But still not where the chain wants to be.

The brand’s U.S. comps fell 7.8 percent in the quarter, burdened by traffic declines, inclement weather, and changes to operating hours, all partially offset by higher average check. January same-store sales dropped 8 percent, and February comps decreased even further in the high 8 percent range. March saw improvement at negative 6.2 percent. To kick off Q2, April comps declined 6.4 percent.

Project Fresh Strategy

Wendy’s Launches ‘Project Fresh’ Strategy to Reignite Growth and Rebuild Brand Relevance

Despite the negative trends, Cook and the leadership team expect sequential quarterly improvement throughout 2026. Wendy’s reiterated its guidance of flat same-store sales for the fiscal year.

The chain’s optimistic outlook hinges on Project Fresh, a multi-year effort that focuses on brand revitalization, operational execution, and system optimization. Leadership emphasized that the turnaround is still in its early stages.

The strategy begins with a renewed emphasis on food quality and brand positioning, with Wendy’s working to reestablish itself as the highest-quality choice in quick service. The company has leaned into its long-standing differentiator of fresh, never frozen beef while making tangible upgrades across the core menu. New buns and improved condiments rolled out across the hamburger lineup, and the spicy chicken sandwich received what the company described as its most significant upgrade to date, featuring a new marinade, panko-style breading, and a more pronounced flavor profile.

Value also played an important role in the quarter, with the launch of Biggie Deals marking a shift in how Wendy’s competes on price. Instead of relying on short-term promotions, the platform provides a consistent, everyday offering across multiple price tiers: $4, $6, and $8. Cook said the structure allows the brand to address multiple occasions, from snacking at the $4 level to full meals at the higher price points.

Marketing has evolved alongside the menu. Wendy’s completed a customer segmentation study in late 2025 and used those insights to build a new brand framework that will guide messaging going forward. Campaigns in the first quarter showcased that shift, including a March Madness program built around the chain’s Frosty and fries pairing, as well as a fan-driven promotion that brought back the Pretzel Bacon Pub Cheeseburger.

“We are aligning our marketing with our food story through our brand essence framework and our increased knowledge of our customers,” Cook said. The company also initiated a media agency transition, its first in nearly two decades, with the goal of improving efficiency and impact.

Operational Execution

Operational execution remains a critical lever too, as Wendy’s works to close the performance gap across its system. Company-operated restaurants, which have fully implemented the Project Fresh playbook, outperformed the U.S. system by 3.1 percent in the quarter. The company views that gap as proof that better execution can translate directly into stronger sales.

Higher-performing restaurants are outpacing lower-tier locations by as much as 4 to 5 percent in same-store sales.

To drive consistency, Wendy’s has rolled out a series of operational initiatives across its U.S. footprint. Menu item label printers now appear in roughly 85 percent of restaurants, improving order accuracy and helping customers identify items more easily. The company also introduced a “white glove” cleaning program to raise standards around restaurant cleanliness. Those efforts have produced measurable gains, including increases in accuracy scores and customer satisfaction.

“When we focus on things, we do see results,” Cook said.

Adoption of these initiatives across the franchise system remains a work in progress. About 25 percent of restaurants have fully implemented the operational playbook, with another 25 percent in the process of doing so. Leadership said engagement from franchisees has been strong, with regular systemwide calls and feedback loops helping to accelerate progress.

Digital Engagement and Optimization

Additionally, technology and digital engagement continue to play a growing role in the turnaround. U.S. digital sales increased 8.4 percent in the quarter, with digital mix reaching 22.7 percent. Wendy’s has integrated an AI recommendation engine into its mobile app, allowing for more personalized ordering suggestions based on customer behavior, location, and seasonality. The company is also expanding payment options and enhancing the overall digital experience to drive frequency and conversion.

Another major component of Project Fresh involves system optimization, which focuses on improving franchisee economics and overall system health. Wendy’s has already completed more than half of its planned footprint optimization and expects to be largely finished by the end of the second quarter. The chain announced last year that it planned store shutdowns in the mid single digits, which means hundreds of closures.

The company is also working with operators to adjust hours of operation, reducing underperforming breakfast periods while extending late-night availability where demand is stronger.

“Late night was actually the best performing day part in the quarter,” Cook said. Breakfast, by contrast, remained a drag on performance and negatively impacted same-store sales by more than 1 percent.

These changes come as franchisees face ongoing margin pressure. In 2025, U.S. franchisees saw net sales decline about 6 percent and EBITDA margins fall 2.7 percent to 9.3 percent, driven largely by commodity inflation, particularly in beef. The company acknowledged that performance varies widely across the system, with stronger operators delivering materially better results. Leadership stressed that improving top-line sales remains the most important lever for strengthening franchisee economics.

Consumer behavior has added another layer of complexity. Wendy’s reported continued pressure among lower-income guests, while higher-income consumers have held up better. That dynamic has informed both the company’s value strategy and its positioning as an “everyday upgrade” within QSR.

Wendy’s maintained its full-year outlook and continues to expect performance to improve as Project Fresh initiatives scale. The company anticipates a mid-single-digit decline in systemwide sales during the second quarter, followed by a return to growth in the back half of the year.

Leadership pointed to a stronger marketing calendar, improved operations, and continued menu innovation as key drivers of that inflection. For instance, Wendy’s plans a collaboration with the upcoming “Minions & Monsters” movie in July, and will bring back the Pretzel Bacon Pub Cheeseburger.

“I’m proud of the early progress we are making to turn around our U.S. business,” Cook said. “We’re improving marketing effectiveness, taking the right steps to reestablish Wendy’s as the highest quality choice in QSR and elevating the customer experience in our restaurants. We are moving with urgency to stabilize our business and build capabilities for sustainable long-term growth.”

Wendy’s finished Q1 with 5,805 U.S. stores after shuttering 164 units in the quarter.

Internationally, comps fell 0.4 percent. The chain ended Q1 with 1,446 stores outside the U.S.