Wendy’s Closing Up to 360 ‘Underperforming’ Restaurants in First Half of 2026 After Sales Drop
Wendy’s is preparing to close between 5% and 6% of its U.S. restaurants in the first half of 2026 as the company responds to declining sales and pressure from inflation-weary customers. With 5,969 U.S. locations operating at the end of 2025, that percentage translates to roughly 300 to 360 closures nationwide. The company has not released a list of affected locations.
The move follows a difficult fourth quarter. Wendy’s reported that global same-store sales fell 10% in the October to December period, exceeding analysts’ expectations for an 8.5% decline. U.S. same-store sales dropped even further during the quarter, reflecting slower traffic and shifting consumer behavior.
Company leadership first signaled closures in late 2025, but offered more detailed numbers during its February earnings update. Executives said 28 restaurants were already closed in the fourth quarter, and more reductions would follow as part of a broader turnaround plan.
Sales Slide and Store Performance
Wendy’s fourth-quarter performance underscores the scale of the challenge. According to its Q4 2025 earnings call, global systemwide sales declined 8.3% and systemwide restaurant sales fell 10.1% compared with the prior year. In the U.S., systemwide sales dropped 10.5% while same-restaurant sales declined 11.3%.
The company’s annual performance reflected similar headwinds. Global systemwide sales fell 3.5% in 2025, and same-store sales were down 5.6% for the year. Interim CEO Ken Cook acknowledged that the brand struggled to compete effectively on value during a period of consumer belt-tightening.
“One learning from 2025 around value, we swung the pendulum too far towards limited-time price promotions instead of everyday value,” Cook said during a conference call with investors. The company now plans to refocus its pricing strategy to regain consistency and rebuild traffic.
Why Wendy’s Is Closing Locations
Executives have described the closures as part of a system optimization effort rather than a retreat. In its earnings materials, Wendy’s said it expects 5% to 6% of U.S. restaurants to close in the first half of 2026 as it works with franchisees to improve overall economics.
Cook previously told investors that some restaurants “are a drag from a franchisee financial performance perspective.” He said the goal is to evaluate each location individually, determining whether improvements to technology, equipment, or management could revive performance. In other cases, permanent closure is considered the most viable option.
“By closing consistently underperforming restaurants, we are enabling our franchisee partners to increase focus on locations with the greatest potential for profitable growth,” Cook said, adding that discussions with franchisees are happening on a store-by-store basis.
A Turnaround Built on Value and Efficiency
While reducing its domestic footprint, Wendy’s is outlining a broader turnaround strategy under a plan called Project Fresh. The initiative includes brand revitalization, operational excellence, system optimization and capital allocation adjustments designed to improve franchisee profitability and long-term growth.
As part of that strategy, the company has introduced a permanent “Biggie Deals” value menu featuring $4, $6 and $8 price tiers. Leadership says the move aims to provide clearer everyday value rather than relying heavily on short-term promotional pricing. Wendy’s also plans to introduce new menu items this year, including a new chicken sandwich.
Despite the closures, Wendy’s expects global systemwide sales to be approximately flat in 2026 and projects adjusted EBITDA between $460 million and $480 million. The company returned $330 million to shareholders in 2025 through dividends and share repurchases, signaling continued confidence in its long-term direction even as it reshapes its U.S. footprint.
