Margaret-May Binshtok

Margaret-May Binshtok inquired about the cadence of same-restaurant sales (comps) through November and December 2025, and the trends observed exiting the quarter into January 2026, following the expected trough in October.

Answer

Interim CEO and CFO Ken Cook confirmed October was the trough, with November and December showing improvement. He noted early January 2026 also saw improvements, but the launch of the new Biggie Deals platform was met with significant weather disruption, resulting in U.S. same-restaurant sales being down approximately 8% for January. Cook anticipates Q1 2026 will be slightly better than January, with sequential improvement throughout 2026 driven by Biggie Deals, new product launches (Girl Scout Thin Mint Frosty, Chicken Tenders Ranch Wrap, Cheesy Bacon Cheeseburger), and Project Fresh initiatives.

Margaret-May Binshtok asked for color on the cadence of Wendy's comparable sales through November and December 2025, and the trends observed exiting the quarter into January 2026, following the expectation that October would be the trough.

Answer

Ken Cook, Interim CEO and CFO, confirmed that October was the trough, with November and December showing improvement. He noted early January saw further improvements, but the launch of the new Biggie Deals platform was met with significant weather disruption, resulting in U.S. same-restaurant sales down 8% for January. Cook anticipates Q1 2026 to be slightly better than January's performance and expects sequential improvement throughout the year as Project Fresh initiatives and new product launches (Girl Scout Thin Mint Frosty, Chicken Tenders Ranch Wrap, Cheesy Bacon Cheeseburger) take hold.

Margaret-May Binshtok of Wolfe Research LLC asked if the '100 Days of Summer' campaign had any positive impact on value perception and if a previously mentioned fall/winter value calendar was still planned.

Answer

Interim CEO & CFO Ken Cook pivoted away from discussing a specific fall/winter calendar, stating the clear focus for the second half is on chicken and beverage innovation to ensure excellent execution. He reiterated that value remains an important part of the menu, primarily through the Biggie Bag, and emphasized the opportunity to better communicate the quality inherent in Wendy's offerings, which he views as a compelling value proposition. He also noted new data analytics will provide better learnings on value.

Margaret-May Binshtok asked about the specific levers US Foods has to continue pushing private label penetration higher in 2026, given the observed acceleration in this area.

Answer

Dave Flitman (CEO, US Foods) highlighted private label's value proposition (cost-effectiveness, quality, higher profitability for the company and sales force) and noted that 25% of independent restaurant customers already have over 70% penetration with US Foods' brands, indicating significant upside through continued sales force focus and innovation in high-quality private label products.

Margaret May Binshtok asked about the expected ramp-up and benefits of AI deployment for dynamic pricing and customer behavior analysis in 2026, and for an update on the M&A environment outlook.

Answer

CEO Chris Pappas stated that AI, previously used without the label, is ingrained in daily operations for customer insights and efficiency, constantly evolving. He encouraged sales teams to leverage technology to free up time for customer interaction. CFO Jim Leddy noted no change in the M&A market outlook, with Mr. Pappas adding they are cautiously seeking synergistic and accretive deals, especially low-risk 'fold-ins' that boost organic growth.

Margaret-May Binshtok inquired about the progress of digital penetration towards long-term goals and its role in enhancing relevance with existing customers. She also asked if there was any weakness observed in business-related travel.

Answer

Chris Pappas, Founder, Chairman, and CEO, and Jim Leddy, CFO, confirmed digital penetration is over 60% and continues to drive salesforce efficiency and support the sales strategy. Chris Pappas noted hearing 'noise' about business travel but observed strong domestic tourism and continued robust tourism in the Middle East, indicating overall positive travel-related demand.

Margaret-May Binshtok sought clarification on whether the Triple Dipper advertising was the 'unpriced point value messaging' mentioned last quarter, and if future advertising would be price point-centric.

Answer

CEO Kevin Hochman confirmed that the Triple Dipper messaging was indeed part of the non-price point message, which resulted in a lower overall volume response compared to the 3 for Me price point messaging. He reiterated that they returned to the $10.99 price point-centric advertising after a brief period with the non-value message.

Margaret-May Binshtok sought clarification on the shift from 'unpriced value messaging' (Triple Dipper advertising) back to 'value advertising' (price-point centric messaging).

Answer

Kevin Hochman, President and CEO of Brinker International, confirmed that the Triple Dipper advertising was the 'unpriced value messaging' and that its lack of a price point contributed to a lower overall volume response compared to the $10.99 3 for Me messaging. He reiterated the decision to lean back into price-point centric value advertising on TV.