Burger King's domestic same-store sales jumped 8.5% in Q2, while Wendy's fell 7% for its sixth straight quarter of contraction. The turnaround effort by parent Restaurant Brands International pushed it past Wendy's.
Burger King has pushed past Wendy's to become the second-largest U.S. burger chain by sales, ending Wendy's six-year hold on the runner-up position behind McDonald's.
Burger King's domestic same-store sales jumped 8.5% in the second quarter, fueled by a turnaround effort that parent company Restaurant Brands International (NYSE: QSR) launched in late 2022. Wendy's same-store sales in the U.S. fell 7%, its sixth straight quarter of contraction, the company reported Friday.
Wendy's new CEO Bob Wright acknowledged the chain's competitive position has weakened as customers pulled back.
"Today we are clearly not performing at our potential," Wright wrote in a statement. "Our traffic, our value proposition and franchisee economics are not meeting our expectations."
Wendy's had surpassed Burger King roughly six years ago, helped by the nationwide rollout of its breakfast menu. Its grip on the spot eroded as Burger King poured money into restaurant remodels, increased marketing spending, and changes intended to improve food quality.
Burger King focused heavily on its signature Whopper. The chain revamped the burger earlier this year, changing the bun, packaging, mayonnaise and other elements. Burger King U.S. and Canada President Tom Curtis told The Wall Street Journal the improvements are bringing customers back.
"A lot of people are saying they're coming back for the first time in a long time," Curtis said.
Burger King also introduced a "Whopper guarantee" – it will remake an order if a customer is unhappy and provide another Whopper free on a future visit.
Wendy's has dealt with turnover at the top just as restaurant traffic weakened and beef costs added pressure. Longtime CEO Todd Penegor retired in 2024 after eight years. Former PepsiCo executive Kirk Tanner succeeded him left a little more than a year later to become CEO of Hershey (NYSE: HSY). CFO Ken Cook served as interim chief executive before the company named Wright, the former CEO of Potbelly, to the job in May.
Wright said Wendy's recent problems have hurt customer traffic and put pressure on restaurant economics, an increasingly important issue for a largely franchised chain whose operators must absorb higher costs while competing for value-conscious diners. He said the company is taking action on five fronts: rebuilding the menu, marketing that drives demand, operational excellence, a digital experience, and restaurants as a growth engine.
McDonald's (NYSE: MCD) remains dominant. It held about 48% of the U.S. burger market in 2024, according to Barclays data. Wendy's held an estimated 11.4% share at the time, compared with about 10% for Burger King. The reversal does not put Burger King close to the Golden Arches, Curtis said the chain believes it is taking share from competitors including potentially McDonald's, and sees an opportunity to turn new customers into regulars.
"The next generation of burger lovers are being exposed to Burger King, and that means we've got runway ahead for years to come," Curtis told the Journal.
Burger King's improvement also comes as McDonald's works through its own U.S. challenges. McDonald's has been revamping its burgers, testing new menu items, and looking for ways to improve food quality, service and value. The McDonald's stock page and QSR stock page track the parent companies.
Wright said he returned to Wendy's because he believes the chain can fix its issues. "I am excited to work with our team and our franchisees to drive a strong turnaround," he wrote in the earnings release.
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