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Wendy’s Q1 sales decline 7.8% as Project Fresh turnaround gains momentum

Wendy's reported its Q1 2026 results on May 8, focusing on its Project Fresh initiatives.

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May 11, 2026 by Amy Sorter — Writer and Editor, Connect Media

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The Wendy's Company reported continued pressure during Q1 2026, as U.S. same-store sales declined 7.8% while global systemwide sales fell 5.5%.

Executives said during the May 8 earnings call that the decline was caused by reduced restaurant traffic resulting from severe weather and changes in restaurant operating hours. Executives also emphasized, however, that the company is still in the early stages of its Project Fresh turnaround strategy, which is beginning to show positive results.

Project Fresh and its pillars

Wendy's launched its Project Fresh strategy in October 2025 to modernize operations, improve profitability and refresh the brand across the U.S. system. The turnaround strategy focused on the following during Q1.

Brand revitalization

The company retained Creed UnCo to strengthen marketing and messaging consistency. During the earnings call, Wendy's interim CEO and CFO Ken Cook said the revamped messaging will become more visible throughout 2026, targeting audience segments that offer stronger growth opportunities.

The company also introduced its Biggie Deals menu, with menu items at $4, $6 and $8 price points. Additional menu and product upgrades included:

New buns, ketchup and mayonnaise.
A continued focus on fresh, never frozen beef.
An upgraded spicy chicken sandwich featuring a new marinade, panko-style breading and a nine-spice blend.
More culturally relevant marketing initiatives.

"Both our hamburger and chicken sandwich enhancements are important steps that build on our heritage and align with our brand essence to deliver the highest quality food for our customers and be squarely better than anyone else in QSR," Cook said.

System optimization

Wendy's continued working with franchisees to improve restaurant space and operating hours. The changes included reducing some morning daypart hours while expanding late-night operations; however, Cook emphasized that many restaurants in the U.S. system continue to serve breakfast.

"These actions will strengthen the system by enabling restaurants to consistently deliver the quality and service Wendy's was built on while strengthening franchisee economics," he added.

Operational excellence

The company rolled out enhanced training and performance management procedures during Q1 and plans to expand the program throughout the U.S. system during 2026.

Cook said that restaurants with the highest customer satisfaction scores outperformed lower-tier restaurant sales by as much as 500 basis points. Additionally, corporate-owned restaurants that fully implemented the initiatives outperformed the broader U.S. system by 310 basis points.

The company's digital initiatives also contributed to growth, with U.S. digital sales increasing 8.4% and digital mix reaching 22.7%.

Capital allocation

Wendy's invested in field team resources, digital infrastructure and restaurant technology to improve product and promotional testing capabilities.

The company is also directing more resources toward global expansion efforts, including in-market capabilities to support international growth.

Expansion plans in China

Wendy's signed a new franchise agreement to develop up to 1,000 restaurants across China over the next 10 years. Executives described the franchise partner as an experienced restaurant operator with a strong understanding of Chinese consumers and the local market.

Cook said that Wendy's is working closely with the franchisee to develop launch plans.

Staying the course

Executives said the company is maintaining its 2026 outlook based on the actions currently underway to strengthen the system and position the business for long-term growth. Cook also acknowledged that performance is expected to improve over time, though the exact timing is difficult to predict.

"Our Project Fresh initiatives are designed to build on one another, with the benefits compounding over time as additional actions are implemented," he said.

About Amy Sorter

Amy W. Sorter is an award-winning journalist, copywriter and content producer. Sorter has generated quality articles, blogs and thought leadership pieces for multiple industries during her many decades as a writer. Her byline has appeared in local and national publications including the American Business Journal, Connect CRE, Bankrate, CURE Magazine and the Dallas Morning News.

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