• by Steve Ellwanger , March 2, 2022

Launching breakfast nationwide two years ago this month—just before the pandemic completely upended consumers’ daily routines—is paying off for Wendy’s.

Backed by some $25 million in advertising last year, breakfast sales rose 25% over 2020 and averaged about 8% of sales in the fourth quarter ended Jan. 2.

As a result, the QSR chain will spend approximately $11 million this year to further promote breakfast, while launching it in Canada in the second quarter, backed by about $5 million.

In addition to the sales gains, the ad spend has helped to increase “overall breakfast awareness to record levels,” The Wendy’s Co. president and CEO Todd Penegor told financial analysts yesterday during an earnings presentation.

Asked by Chris Carril of RBC Capital Markets to quantify the awareness, Penegor didn’t offer specifics except to say “We’re basically on par with Burger King, which has been in the business for a long, long time.”

With regard to the Omicrom variant and its impact on business, Penegor was optimistic.

“So, patterns are starting to come back. People are starting to return to work. Some of the changes in CDC guidance—and the requirements around masks and comfort levels for folks getting back in the office—will certainly help set us up for success into this year,” said Penegor.

He outlined some of the chain’s plans to promote breakfast going forward.

“As we roll into March Madness, we are the official breakfast of the NCAA. We’re also the official hamburger of the NCAA. So you’ll see a lot of messaging to continue to drive awareness as we move forward into the future.”

One of the chain’s most recent breakfast-only offerings is the Hot Honey Chicken Biscuit—dubbed “A Morning Marvel.”

According to Kantar, Wendy’s U.S. ad spending—excluding paid search and social media—rose to $292.3 million last year from $232.6 million in 2019.