This month’s newsletter dives into a recap of how brands in the QSR space are reflecting and pivoting after a difficult year for the vertical, and how certain brands are right-sizing their business model to improve profit margins heading into 2026.
Following a yearlong battle for share of the consumer’s wallet, brands head into 2026 poised to continue the “Value War” to bolster sluggish sales performance.
The Golden Arches Sets the Tone
National leaders like McDonald’s and Wingstop are slated for growth in 2026, following a year in which numerous QSR and fast-food brands faced challenges in gaining consumer share. While these leaders benefit from strong operations, pricing discipline, and technology, much of the industry is still searching for a fresh “spark” to drive traffic and excitement. Overall success in 2026 will hinge on delivering a clear value proposition, which was a key theme throughout 2025, while differentiating through innovation and digital capabilities to ensure ease and customization of their products.
Source: QSR Magazine
Burger King is leaning into nostalgia and family-friendly engagement as part of its broader “Reclaim the Flame” strategy.
Continuing the Brand’s Path for Conquesting Burger Buyers
The brand’s recent SpongeBob collaboration underscores this shift, featuring themed menu items, playful packaging, app activations, and experiential drive-thru elements. This approach reflects a growing QSR trend: pairing value-driven offerings with emotional connections and digital touchpoints to reignite consumer excitement heading into 2026.
Source: QSR Magazine
The Restaurant Finance and Development Conference convened in late November and highlighted how 2025 has split the restaurant world into clear winners and losers, driven by a deep consumer divide between those still spending freely and those pulling back on discretionary dining.
Insight Round-Up from RFDC 2025
Pundits noted that consumers are increasingly value-focused as pricing across segments has converged, pushing diners toward restaurants that offer clear value through portion, experience, or perceived quality rather than just higher price tags. As a result, brands that have kept prices in check and invested in holistic value, like Golden Corral and Chili’s, are seeing growth, while many fast casual and quick-service chains tied to younger or more price-sensitive customers are struggling. Executives pointed out that restaurants with strong operational focus, compelling value propositions, and broad demographic appeal are better positioned for success in 2026. With price sensitivity likely to stay high, the industry outlook suggests that value delivery, not just brand strength, will determine who thrives in the year ahead.
Source: Restaurant Dive
Wendy’s announced during its Q4 earnings call that it plans to shutter a “mid-single-digit percentage” of its U.S. locations, amounting to roughly 200–350 underperforming restaurants through late 2025 into 2026.
Right-sizing For Wendy’s Amidst 2025’s Heightened Fast-Food Competition
The interim CEO said the closures target sites that are “consistently underperforming” and dragging down the overall system’s performance. This move comes after a recent decline in sales, with U.S. same-store sales and overall revenue slipping, even as some international performance metrics remain stronger. Company leadership frames the closures as part of a broader turnaround strategy to strengthen the brand, reallocate capital, and improve profitability at remaining locations.
Source: CNN
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