An exterior view of a Wendy's fast food restaurant in Bloomsburg, Pennsylvania, on May 19, 2024.
Pablo Tejedor | SOPA Images | fake images
Wendy's will offer a $3 breakfast combo meal starting Monday, as restaurant chains look for new ways to boost sales as consumers stop dining out.
The deal will include a small portion of seasoned potatoes and the choice of a bacon, egg and cheese English muffin or a sausage, egg and cheese English muffin, the fast food chain said.
The promotion comes as a rival to Wendy. McDonald's Plan a similar but limited value food option while trying to increase traffic. Last week, CNBC reported that the fast food giant's $5 meal deal would be available in stores for one month only, starting June 25.
Consumers have become more selective about where they spend their money, and some restaurants have begun to see a long-awaited consumer pullback. Other fast-casual chains have enjoyed strong sales despite higher prices.
As inflation persists, businesses serving low-income consumers have faced a particular challenge in attracting customers.
Wendy's reported earlier this month that first-quarter revenue grew a modest 1.1% to $534.8 million. Its worldwide comparable sales grew just 0.9% in the quarter.
McDonald's missed first-quarter earnings expectations last month. Although higher prices have helped the chain's revenue, they have driven away some low-income customers. Chief Financial Officer Ian Borden said the company has adopted a “street-fighting mentality” to compete for value-conscious diners.
Owner of KFC, Pizza Hut and Taco Bell Yum brands also released a disappointing earnings report earlier this month as revenue missed Wall Street estimates. The company cited declines in comparable sales at KFC and Pizza Hut.
