Wendy's Stock Plummets 71% as Traffic Declines Continue

Wendy's stock has taken a significant hit in recent years, declining by over 71% in the past five years. The company's new CEO, Bob Wright, who led a turnaround at Potbelly's, took over in late May and will unveil his full comeback strategy with the company's third-quarter results in early November.

The main issue facing Wendy's is a decline in traffic. In the second quarter of 2026, the company reported U.S. same-store sales fell 7%, and traffic decreased by 12.5%. This marks the sixth consecutive quarter in decline for the 56-year-old American franchise.

Rival Burger King, owned by Restaurant Brands International, saw its sales grow significantly, bucking the negative trends that have been affecting Wendy's and McDonald's. Consumers have complained about declining quality, service, and value at Wendy's, making it a less appealing option for discretionary dollars.