Wendy's Announces Major US Restaurant Closures and Value Push After Disappointing Quarter
Wendy's, the prominent fast-food chain, is implementing a significant restructuring plan that involves shutting several hundred underperforming restaurants across the United States while intensifying its focus on value offerings. This strategic shift comes in direct response to a weaker-than-anticipated fourth quarter performance, as disclosed by the company on Friday, 13th February 2026.
Sharp Decline in Same-Store Sales Triggers Action
The Dublin, Ohio-based organisation reported a stark 10% drop in global same-store sales for the October to December period, a figure that notably exceeded the 8.5% decline projected by analysts surveyed by FactSet. Within the United States, the sales downturn was even more pronounced, accelerating the chain's decision to address its operational challenges head-on.
Wendy's had previously indicated intentions to close struggling US outlets late last year, but provided concrete details on Friday. The company confirmed it already shuttered 28 restaurants during the fourth quarter, concluding 2025 with a total of 5,969 US locations. Furthermore, Wendy's anticipates closing between 5% and 6% of its US restaurants, equating to 298 to 358 establishments, throughout the first half of this year.
Closures Build on Previous Restructuring Efforts
These planned closures represent a continuation of earlier consolidation efforts, following the shutdown of 240 US Wendy's locations in 2024. At that time, the 57-year-old chain attributed many closures to outdated facilities that no longer met modern consumer expectations or operational standards.
In a move mirroring strategies adopted by competitors like McDonald's and Taco Bell, Wendy's is placing renewed emphasis on value to recapture customers grappling with persistent inflation pressures. Ken Cook, Wendy's interim Chief Executive Officer and Chief Financial Officer, acknowledged during an investor conference call that the company's 2025 approach to value was misaligned.
"One learning from 2025 around value, we swung the pendulum too far towards limited-time price promotions instead of everyday value," Cook stated, highlighting the need for a more consistent value proposition.
Introduction of Permanent Value Menu and New Products
To rectify this, Wendy's launched a permanent "Biggie Deals" value menu in January, featuring three distinct price tiers: $4 Biggie Bites, $6 Biggie Bags, and an $8 Biggie Bundle. Cook also revealed that Wendy's will introduce new products this year, including an innovative chicken sandwich, aiming to rejuvenate customer interest and drive traffic.
Financially, Wendy's reported a 5.5% decrease in fourth-quarter revenue to $543 million, though this surpassed analyst forecasts of $537 million. The company expressed optimism that its US turnaround initiatives, coupled with international expansion, will help stabilise sales in the coming year.
Wendy's projects that global systemwide sales, encompassing both company-owned and franchised restaurants, will remain flat this year after experiencing a 3.5% decline in the previous year. Reflecting investor confidence in these strategic adjustments, Wendy's shares climbed nearly 5% during mid-day trading on Friday.
