If you follow fast-food news, you'll know that one of the biggest stories last year was about Wendy's yoinks-ing Burger King's spot as the second-largest burger chain in the country. You'll also know that Wendy's then became the third-largest chain with regards to breakfast sales. Now, thanks to information shared in a recent fourth-quarter earnings call, we know how Wendy's continued building on this remarkable feat: with well-priced breakfast biscuits.
For more fast-food news, check out 8 Worst Fast-Food Burgers to Stay Away From Right Now.
Sales growth at Wendy's in the most recent quarter was driven by the chain's popular Buck Biscuit promotion, CEO Todd Penegor told investors on Tuesday. The deal kicked off in November and gave customers the chance to try one of Wendy's breakfast biscuit sandwiches for only a dollar. Traffic from the Buck Biscuit promo grew the chain's same-store sales by over 6%. It also drove growth in breakfast sales, leading to a 25% annual increase.
Wendy's dreamt up the Buck Biscuit as a way to sustain customer interest in its (relatively) new breakfast menu, which launched in March of 2020. While the rollout of the menu was hampered by the pandemic—with traffic lost due to a changing work environment for millions of Americans—it has since become one of Wendy's biggest earners, accounting for 8.5% of all sales in the most recent quarter.
Looking ahead, Wendy's is doubling down on breakfast. The chain is aiming for 10% to 20% sales growth in the daypart in the next year and will be spending over $11 million in advertising to get there. The company intends to promote its breakfast items (which include a new Hot Honey Chicken Biscuit) at the upcoming NCAA Men's Basketball tournament.
In the meantime, keep your eyes peeled for a second run of the Buck Biscuit deal.