Wendy's Announces Major US Restaurant Closures Amid Sales Slump
Fast-food heavyweight Wendy's has unveiled a substantial restructuring plan, confirming the closure of hundreds of its American restaurants following a disappointing fourth-quarter performance. The Dublin, Ohio-based company is intensifying efforts to attract inflation-weary customers through enhanced value offerings, mirroring strategies adopted by competitors like McDonald's and Taco Bell.
Significant Reduction in US Footprint
Wendy's revealed it will shutter between 5 per cent and 6 per cent of its US outlets in the first half of this year, equating to 298 to 358 locations. This follows the closure of 28 restaurants in the final quarter of 2025, bringing its total US footprint to 5,969 locations by year-end. These latest cuts add to the 240 US Wendy's locations that ceased operations in 2024, with the 57-year-old chain acknowledging many sites were simply "out of date."
Disappointing Sales Performance Drives Change
The strategic shift comes after global same-store sales, for locations open at least a year, plummeted by 10 per cent in the October-December period, falling short of analysts' expectations of an 8.5 per cent drop. US same-store sales experienced an even steeper decline. Despite this, the company's revenue for the fourth quarter, at $543 million, slightly exceeded forecasts, though it represented a 5.5 per cent decrease year-over-year.
New Value Menu Strategy to Attract Customers
In response to challenging market conditions, Wendy's is launching a permanent "Biggie Deals" value menu featuring three price points: $4 Biggie Bites, $6 Biggie Bags, and an $8 Biggie Bundle. Ken Cook, Wendy's interim CEO and chief financial officer, stated in an investor call: "One learning from 2025 around value, we swung the pendulum too far towards limited-time price promotions instead of everyday value." New products, including a chicken sandwich, are also anticipated this year as part of the revitalization effort.
Confidence in Turnaround and International Expansion
Despite the significant challenges, Wendy's expressed confidence that its US turnaround plans and international expansion will help reverse the sales decline. The company projects global systemwide sales, encompassing both company-owned and franchised restaurants, to remain flat this year, an improvement from the 3.5 per cent fall recorded last year. Investors reacted positively to the announcements, with Wendy's shares climbing nearly 5 per cent in mid-day trading on Friday 13 February 2026.
