Wendy's Struggles Continue as Stock Drops 66% Amid Intense Competition

Wendy's stock has plummeted by 66% over the last five years, faring worse than the broader market. The S&P 500 index rose 70.5% during this period.

The company's struggles go beyond economic factors affecting consumer spending, with Wendy's losing ground to rivals like Burger King and McDonald's. In fact, Burger King recently surpassed Wendy's as the No. 2 burger chain by U.S. sales, with McDonald's holding the top spot.

Wendy's same-store sales have declined for several consecutive quarters, dropping 7% in the second quarter and 2.3% internationally.

To address these issues, the board of directors recently hired Bob Wright as CEO. A restaurant industry veteran with experience at Wendy's, Wright has outlined a five-point plan to revamp the menu, improve marketing and operational efficiency, enhance digital presence, and pursue high-return projects.