Fast food chains are battling for budget-conscious customers as inflation is taking a toll on wallets. Wendy's has announced a new offer in order to keep a hold on consumers and maintain sales.
Starting Monday, Wendy’s is offering a new a breakfast combination meal just for $3. This new combo will include a small portion of seasoned potatoes and a choice of either a bacon, egg, and cheese English muffin or a sausage, egg and cheese English muffin.
Wendy’s deal coincides with McDonald’s introduction of a similar but limited value meal option aimed at increasing customer traffic. Last week, CNBC reported that the fast-food giant's $5 meal deal will be available in stores for just one month, starting June 25.
With inflation on rise, consumers are becoming more peculiar about their expenses and some restaurants have started to see a long expected consumer pullback. The $3 breakfast deal is Wendy's attempt to capture a larger share of the value-conscious market segment in this competitive landscape.
While some fast-casual chains have seen continued strong sales despite price increases, budget-friendly options are proving crucial for attracting customers. Companies that deal cater to lower-income consumers have been affected adversely due to inflation.
Wendy’s earlier this month reported first-quarter revenue grew a modest 1.1% to $534.8 million. Its same-restaurant sales worldwide grew only 0.9% in the quarter. McDonald's also missed earnings expectations last month, citing inflation's impact on low-income customers. Chief Financial Officer Ian Borden said the company has adopted a “street-fighting mentality” to compete for value-minded diners.
KFC, Pizza Hut and Taco Bell owner Yum Brands also reported disappointing earnings earlier this month, as revenue missed Wall Street estimates. The company cited same-store sales declines for KFC and Pizza Hut.
