Wendy’s CEO Says its Breakfast is on Track to Earn Over $1B in Sales

Fast food giant Wendy’s is doing very well with its breakfast orders. According to the company’s CEO, the breakfast game for the company is set to earn it over $1 billion in sales.

“We’re really excited about where this business [breakfast] can go in the future and as part of our earnings, —we do believe it can be a 10% mix of our business by the end of 2022,” Wendy’s CEO Todd Penegor told Yahoo Finance Presents.

He added, “We’ve been talking about how it is [breakfast] a billion plus incremental sales layer to our business — so we’re a $12 billion system today so at a 10% mix, it would be $1.2 billion.”

It was in March of 2020, when the coronavirus pandemic went underway, that Wendy’s re-entered the breakfast space with much planning and a huge investment.

The company began to serve new sandwiches, peppery potato wedges and cold brew coffee with its Frosty ingredients. The company had also hit the television and social media marketing to get the word out.

Unfortunately with the pandemic hitting, Wendy’s was forced to close its restaurant dining rooms. The company stayed on course with its breakfast endeavors regardless and it represented 7% of the company’s Q4 sales.

The company also saw U.S. same-restaurant sales climb up 6% through the week ended Feb. 21. Global same-restaurant sales were up 5%.

Penegor had told analysts back in early March on an earnings call that the business was profit accretive to the company.

“We just think there is a huge opportunity,” Penegor told Yahoo Finance.

Wendy’s is planning to invest $15 million in incremental advertising for breakfast and Penegor said virtually all of Wendy’s franchisees remain fully committed to winning in the breakfast category.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.