Fast-food chain Wendy's has announced plans to close hundreds of its US restaurants as part of a restructuring effort, shifting focus to value deals after a disappointing fourth-quarter performance. The Dublin, Ohio-based company said it will shut between 5% and 6% of its US outlets – equivalent to 298 to 358 locations – in the first half of this year.
These closures follow the shuttering of 28 restaurants in the final quarter of last year, bringing its US footprint to 5,969 locations by the end of 2025. The chain acknowledged that many of its sites were 'out of date,' and the move comes on top of 240 US Wendy’s locations that ceased operations in 2024.
The strategic shift comes after global same-store sales plummeted by 10% in the October-December period, falling short of analysts' expectations of an 8.5% drop. US same-store sales experienced an even steeper decline. Despite this, the company's revenue for the fourth quarter, at $543m, slightly exceeded forecasts, though it represented a 5.5% decrease.
In response, Wendy's is intensifying efforts to attract 'inflation-weary customers' through more competitive pricing. Interim CEO Ken Cook said: 'One learning from 2025 around value, we swung the pendulum too far towards limited-time price promotions instead of everyday value.' The company has launched a permanent 'Biggie Deals' value menu with three price points, and new products, including a chicken sandwich, are anticipated this year.
Despite the challenges, Wendy's expressed confidence that its US turnaround plans and international expansion will help reverse its sales decline. The company projects global systemwide sales to remain flat this year, an improvement from the 3.5% fall recorded last year. Investors reacted positively, with Wendy's shares climbing nearly 5% in mid-day trading on Friday.
