DUBLIN, OHIO — To help counter weak first-quarter customer traffic — part of an overall slowdown in the quick-service restaurant (QSR) industry — Wendy’s Co. is partnering with Takis, Mondelez and Kellanova for co-branded menu items, hoping to spur sales based on the success of the company’s collaboration with Girl Scouts for its Thin Mints Frosty in February.

“I’d like to think about (menu collaborations) as a value proposition,” said Kirk Tanner, president, chief executive officer and president, Wendy’s. “When you can ignite customer passion points, that drives traffic. You only have to look back to the SpongeBob event last October. That ignited a passion and it tied into culture that drove traffic. I believe we have those collaborations that are very intentional … and I don’t believe value meals or deep discounting will overshadow how you connect with customers. My experience has been when you ignite customer passion points, that’s a major driver of enthusiasm for your brand.” 

For the first quarter ended March 30, 2025, Wendy’s posted net income of $39 million, equal to 20¢ per share on the common stock, a drop of 6.7% compared with $42 million, or 20¢ per share, during the first quarter last year. Total revenues were $524 million, down 2.1% from $535 million a year ago. In the United States, same-restaurant sales were down 2.8% compared with last year.

Wendy’s is rolling out Takis-themed menu items this summer to help attract Gen Z customers. 

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“Q1 was a noisy quarter,” said Ken Cook, chief financial officer, Wendy’s. “Five of the first eight weeks of the quarter had significant weather events in our system. Then things turned around as we exited February and into March. We launched Thin Mints Frosty on Feb. 21, and we saw our own same-restaurant sales turn positive as we exited February and entered March. However, we saw a significant shift in industry consumer behavior as we moved throughout March. Consumer confidence fell and customers increasingly pulled back from the QSR industry.” 

Menu innovation and partnerships

Wendy’s saw success through a collaboration with SpongeBob SquarePants last October to boost 2024 fourth-quarter numbers, and followed that with a successful partnership with Girl Scouts for its Thin Mints Frosty. Based on positive results, Wendy’s is launching its Frosty Fusions menu on May 12, featuring a collaboration with Mondelez for its Oreo Brownie Batter Frosty, and a partnership with Kellanova for its Strawberry Pop-Tart Frosty.

“We’ve seen really good results early with Frosty, and I can tell you our experience has been, when we get it right with Frosty, it definitely delivers traffic,” Tanner said. “We think this is a place where we’re tying into customer passion points with one of our most iconic brands. We plan on that being a differentiator and helping us win in the market and take share.”

Wendy’s also will launch its 100 Days of Summer promotion on Memorial Day weekend, which includes a collaboration with Takis for limited-time, themed menu items like the Takis Fuego Chicken Sandwich and Fuego Fries.  

“(Takis) connects with Gen Z customers,” Tanner said. “It’s multicultural. It’s a customer group we’re going after. It drives traffic into our restaurants. The secret is how do you build on that? How does that become innovation off your core menu, and you create brand love through those experiences.”

Wendy’s chicken sandwich is one of those core menu items Tanner describes, and he said the Taki’s menu is a way to draw renewed attention to Wendy’s chicken offerings, especially since chicken is a focus for several QSR brands as a way to drive incremental traffic, due to its current popularity with customers.

“We’re very intentional about putting the Takis collaboration with our chicken sandwich,” Tanner said. “We do see chicken as a major opportunity, and we will announce later this year our plans to holistically look at chicken. We’re very intentional about setting up our chicken and getting momentum in that part of our menu. We know that is critically important to our customers and attracting customers.” 

When we get it right with Frosty, it definitely delivers traffic,” said Wendy’s CEO Kirk Tanner.

| Photo: The Wendy's Co.

Another element of the 100 Days of Summer menu is a focus on breakfast and refreshing the company’s coffee offerings.

“Breakfast remains a top priority for us. We’re innovating on our beverage platform, and this summer, we will have a new coffee lineup of cold brew coffees that are exceptional. We’ll also drive value with beverages in the morning as part of our 100 Days of Summer program.”

Cook added that first-quarter breakfast results were below expectations.

“In this environment, both from a weather environment and a consumer pullback environment, breakfast performed worse than the rest of day as consumer behavior changed,” he said.

Tariffs and AI

Tanner said current tariffs aren’t affecting the company’s bottom line, because “in the US, approximately 95% of our ingredients are sourced domestically, including 100% fresh, never frozen beef. We apply the same sourcing principle in many of our largest international markets,” he said. “For example, in Canada, we use 100% Canadian beef. This is particularly advantageous in the current environment as tariffs have minimal impact on our supply chain.” 

Wendy’s voice-enabled AI order-taking for drive thrus — which the company calls FreshAi —continued to expand during the first quarter. The technology is now at 168 Wendy’s locations in the United States, with a goal of being in 500 locations by the end of 2025.

“There is this opportunity when Wendy greets you at the drive-thru, she knows what to ask you to get the opportunity to enhance your order, so we see that uptick in sales,” Tanner said. “We’ve also seen efficiency in the restaurant. Driving efficiency around being able to get working on the order and providing speed of service and accuracy from a delivery standpoint. We like what we see. The economics are encouraging.”

Wendy’s opened 74 new restaurants globally during the first quarter, including 28 in the United States.

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Based on first-quarter results and a consumer environment that Tanner said is more challenging than anticipated, Wendy’s updated full-year 2025 outlook has been adjusted for global systemwide sales to be flat to down 2%, adjusted EBITDA between $530 million and $545 million, and adjusted earnings per share of 92¢ to 98¢. 

The company added that full-year net unit growth is between 2% and 3%. The company opened 74 new restaurants globally during the first quarter, including 28 in the United States.