Back
Business

Wendy's to Close 5-6% of US Restaurants Amidst Sales Decline and Strategic Shift

View source

Wendy's to Close Up to 6% of U.S. Restaurants in Turnaround Effort

Wendy's has announced plans to close between 5% and 6% of its U.S. restaurants during the first half of the year. This action is part of a turnaround strategy previously communicated in November, which outlined the closure of hundreds of restaurants.

During the fourth quarter, 28 stores were closed as part of this plan. At the end of the year, Wendy's operated 5,969 restaurants in the United States, according to its earnings report.

Strategy Behind the Closures

Interim CEO Ken Cook stated that decisions to close "consistently underperforming restaurants" were made in collaboration with Wendy's franchisees.

The objective is to allow franchisees to concentrate resources on more profitable locations.

The company has not yet released a list of the specific stores slated for closure.

U.S. Sales Decline

The planned closures come amidst a challenging period for Wendy's U.S. operations. Wendy's U.S. sales experienced a decline, with same-store sales falling by 11.3% in the last quarter of 2025 and by 5.6% for the entire year.

Shifting Focus to Everyday Value

In response to market conditions, Cook indicated that Wendy's had previously overemphasized limited-time promotions and is now shifting its focus to everyday value offerings. This includes modifications to its Biggie meals.

In January, Wendy's expanded its Biggie options to include $4 Biggie Bites, a $6 Biggie Bag, and an $8 Biggie Bundle. These offerings are intended to appeal to consumers seeking value amid inflation.

Additionally, Cook noted that the newly introduced chicken tenders, named "Tendys," performed positively despite the broader decline in same-store sales.