Wendy's unleashed a competitor to McDonald's and Burger King — and now the business is on fire

Wendy's Announces New Cage-Free Egg Policy
Wendy's Announces New Cage-Free Egg Policy

Wendy's sales are soaring.

The burger chain's same-store sales increased 4.8% in the fourth quarter, marking the best same-store sales gains in four years, the company reported Tuesday.

One of the main drivers behind Wendy'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 Jr. Bacon Cheeseburger, chicken nuggets, fries, and a drink for $4.

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Several major fast-food chains started offering bundled meal promotions in recent months, including McDonald's "McPick 2 for $2" and Burger King's "5 for $4."

But Wendy's was one of the first chains to offer the bundled promotion nationwide.

Burger King "management says that 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 wrote in a recent note.

Kalinwski's restaurant checks validated the company's theory.

"Indeed, our [restaurant] 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," Kalinowski writes.

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