Wendy’s sales fall again as China deal offers growth outside U.S.

Wendy’s latest quarter put two very different pressures on McDonald’s operators into the same story. In the United States, Wendy’s same-store sales fell 7.8%, its fifth straight quarter of declines, a sign that burger chains may keep leaning harder on value, coupons and traffic-grabbing promos to fight for customers.

At the same time, Wendy’s struck a franchise agreement to build up to 1,000 restaurants across China over the next decade, giving the company a growth lane outside its home market. Wendy’s interim CEO, Ken Cook, said the partner is a large restaurant operator with decades of experience in China, and he cast the move as part of “decisive action” to strengthen the system.

The split matters for McDonald’s crew members, managers and franchisees because the immediate effect is likely to show up close to home. When Wendy’s stumbles in the U.S., the whole burger category tends to get more aggressive on pricing, meal deals and limited-time offers. That can mean more comparison shopping from guests, more questions at the counter about what is cheapest, and more pressure on stores to keep drive-thru times tight while still making the value message visible.

Wendy’s first-quarter results, released May 8 and covering the quarter ended March 29, showed global systemwide sales of $3.2 billion, down 5.5% from a year earlier. International systemwide sales grew 6.0%, while reported net income came in at $22.7 million, adjusted EBITDA at $111.3 million, and diluted EPS and adjusted EPS both at $0.12. Wendy’s also reaffirmed its full-year 2026 outlook.

The company’s international push is still much smaller than its U.S. base, but it is growing. Wendy’s had 1,446 international restaurants as of the first quarter, up from 1,350 a year earlier. Even so, the U.S. side remains under strain, with a net loss of 174 domestic restaurants since late last year and a previous plan to close about 200 to 350 underperforming U.S. stores in 2026.

For McDonald’s, the longer-term issue is where capital and talent flow next. McDonald’s said it plans to reach 10,000 restaurants in mainland China by the end of 2028, up from more than 7,700 at the end of 2025, underscoring how central China has become to growth in the burger business. If Wendy’s keeps chasing overseas expansion while its U.S. base weakens, the competition may shift further toward operators that can scale fast abroad and keep execution tight at home. For stores on the ground, that means the fight over value and speed is not easing up any time soon.