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Wendy's unleashed a dollar menu to compete with McDonald's and Burger King — and now business is on fire

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Wendy's

Sales are soaring at Wendy's.

The burger chain's same-store sales, or sales at stores open at least a year, were up 4.8% in the fourth quarter, the company reported Tuesday, marking the best such gains in four years.

One of the main drivers behind the chain'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 junior bacon cheeseburger, chicken nuggets, fries, and a drink for $4.

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

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

Kalinowski wrote in a recent note that Wendy's management said 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 said Nomura's research validated the company's theory.

"Indeed," Kalinowski wrote, "our 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."

SEE ALSO: Beyoncé song sends Red Lobster's sales soaring 33%

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NOW WATCH: We tried the new value menus at McDonald's, Burger King, and Wendy's — and the winner is clear


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