Wendy's unleashed a competitor to McDonald's and Burger King - and now the business is on fire
The burger chain's same-store sales, or sales at stores open at least a year, were up 4.8% in the fourth quarter, the company reported Tuesday, marking the best such gains in four years.
One of the main drivers behind the chain's momentum has been its new "4 for $4" promotion, according to Nomura analyst Mark Kalinowski.
The promotion, which launched nationwide in October, includes a junior bacon cheeseburger, chicken nuggets, fries, and a drink for $4.
Several major fast-food chains started offering bundled meal promotions in recent months, including McDonald's ("McPick 2 for $2") and Burger King ("5 for $4").
But Wendy's was one of the first chains to offer the bundled promotion nationwide.
Kalinowski wrote in a recent note that Wendy's management said it "may have attained a sort of first-mover advantage by being the first national burger chain to start promoting a bundled meal at this $4 price point nationally."
Kalinowski said Nomura's research validated the company's theory.
"Indeed," Kalinowski wrote, "our checks indicate that subsequent offerings, such as Burger King's '5 for $4' bundled meal and Hardee's/Carl's Jr.'s '$4 Real Deal' did not adversely affect Wendy's business at all, at least during January."