DUBLIN, Ohio, Aug. 10 (Nationwide Times) — Burger King has regained its position as the second-largest burger chain in the United States by systemwide sales, ending Wendy’s six-year run in the spot, according to CNBC.
The shift reflects a sharp difference in the companies’ latest sales trends. Burger King reported an 8.5% increase in U.S. same-store sales for its second quarter. Wendy’s reported a 7% decline, marking its sixth consecutive quarter of contraction, according to company results cited by CNBC.
Burger King is owned by Restaurant Brands International Inc. (NYSE: QSR), while The Wendy’s Co. (NASDAQ: WEN) operates the Wendy’s brand. McDonald’s Corp. (NYSE: MCD) remains the largest U.S. burger chain by a wide margin.
What does the ranking measure?
The ranking is based on systemwide sales, a measure that generally includes sales across a brand’s entire restaurant system, including franchised locations. It is different from a company’s reported revenue, which can reflect only the money that flows directly to the corporate parent.
Same-store sales, also called comparable-store sales, measure the change in sales at restaurants open during comparable periods. The measure is used to show whether existing locations are attracting more or fewer customers, without relying only on newly opened restaurants.
That distinction matters here. Burger King’s 8.5% same-store-sales increase indicates stronger sales at comparable U.S. restaurants during the quarter. Wendy’s 7% decline indicates weaker performance at its comparable locations. Those results help explain the change in the systemwide-sales ranking, but they are not themselves the ranking.
What changed for Wendy’s?
Wendy’s held the No. 2 position for six years before Burger King moved ahead, according to the reports. The supplied records do not identify the precise dataset used to establish the historical ranking or specify the exact year Wendy’s took the position.
A separate account of the companies’ quarterly results reported that Wendy’s system sales fell 8.2% and traffic declined 12.5% during the quarter, along with restaurant closures. The underlying company filing or release for those figures was not identified in the available records, so the details cannot be independently confirmed here.
One report gave Wendy’s latest same-store-sales decline as 6.3%, rather than 7%. The available information does not establish whether that difference reflects rounding, a different reporting period or a different measure. Most of the supplied reports used the 7% figure.
Why it matters
For investors, the ranking is a sign that the two public companies are moving in opposite directions in the U.S. burger market. For Wendy’s, continued declines at existing restaurants can put pressure on franchisees and corporate plans to restore sales. For Burger King and its parent, stronger comparable sales can support the brand’s competitive position, although one quarter does not determine its long-term performance.
The ranking also does not show how individual restaurants, workers or local communities are being affected. The available information is national and does not identify specific franchisees, markets or employment changes. Customers may see changes in promotions, menus or restaurant locations as the brands compete for sales, but no such changes are established in the supplied records.
