Wendy's shares drop 40% amid weak U.S. sales and tough competition from McDonald's.

Wendy's stock has fallen about 40% over the past year due to ongoing weak same-restaurant sales growth in the U.S., especially among lower-income consumers. Despite efforts like the 'Project Fresh' initiative, Wendy's struggles to compete with McDonald's, which is seeing positive sales growth driven by value promotions. The company's limited prospects for a turnaround have led to a reiterated Sell rating. This reflects broader macroeconomic pressures impacting consumer confidence and spending.