Restaurant chains refocus on food quality to bring back diners

Key points

• Restaurant chains are improving food quality to win back diners who are eating out less often.
• Wendy's reported a seventh straight quarter of same-store sales declines and rejected a $1.4 billion takeover bid.
• Burger King's U.S. same-store sales rose 8.4% after it revamped the Whopper and its nuggets.

Restaurant chains across the industry are refocusing on food quality in an effort to bring back diners, CNBC reported. Consumers have dined out less often and become pickier over the last two years, according to data from Black Box Intelligence, and executives are now expanding their definition of value beyond menu pricing.

Chief executives from Wendy's to Chipotle Mexican Grill have touted new or upcoming menu improvements on recent quarterly earnings calls. Discounts and one-off promotions can lift traffic for a time, but the article says the actual product still matters for long-term growth and franchisee profitability.

Turnaround plans at Wendy's and Burger King

Wendy's unveiled a five-part turnaround strategy on Thursday that includes "quality food at real value." CEO Bob Wright told analysts the chain is testing improvements to core items, including thicker, crispier bacon, a richer and creamier Frosty, whole leaf lettuce on sandwiches and improved salads. That same day, Wendy's reported its seventh straight quarter of same-store sales declines and publicly rejected a $1.4 billion takeover bid led by Nelson Peltz's Trian Partners, saying the proposal did not account for the potential value of its turnaround plan.

Burger King has revamped its Whopper and, in September, overhauled its nuggets with 100% white meat, crispier breading and a more flavorful marinade, along with reformulated sauces. Whopper sales rose by a double-digit percentage in the third quarter and nugget sales climbed more than 35%, according to CEO Josh Kobza, while U.S. same-store sales jumped 8.4%. The article cites Domino's 2009 recipe change, which helped spur U.S. same-store sales growth of 9.9% the following year, as precedent.

We think the product's improved and even better

— Chipotle CEO Scott Boatwright

Menu changes beyond the turnarounds

Chili's, whose same-store sales have soared 52% over the past three years, will next improve its salads and steaks, Brinker International CEO Kevin Hochman told CNBC. Applebee's launched a juicier chicken tender in its latest quarter and plans to overhaul more protein options in 2027, according to Dine Brands CEO John Peyton.

McDonald's is testing hand-breaded wings, strips and a sandwich in a handful of Chicago-area restaurants, with plans to expand the trial to more U.S. and Ireland locations in early 2027. It is also trying to improve its coffee with fresher beans and upgraded equipment, and in October launched "Make It Golden," a multiyear training program. Its U.S. same-store sales fell 0.2% in the third quarter.