Wendy’s to Close Hundreds of U.S. Locations Amid Sales Decline
Wendy’s is set to shut down a significant number of its restaurants in the U.S. following an 11.3% drop in sales within the country. Some locations have already ceased operations.
The fast-food chain plans to close about 5% to 6% of its U.S. restaurants, translating to roughly 240 to 360 locations, during the first half of 2026.
Already, Wendy’s has stopped operations at restaurants in West Lafayette, Indiana, Stockton, California, and Langhorne, Pennsylvania.
In the fourth quarter, the burger chain noted a 10% decrease in global comparable sales, primarily driven by that notable 11.3% decline in the U.S., its largest market.
These results were below Wall Street expectations, highlighting a disappointing finish to the year for the company.
Adjusted EBITDA for this quarter stood at $113.3 million, just surpassing analyst predictions of around $112.6 million. Meanwhile, adjusted earnings per share were 16 cents, which is a bit better than the anticipated 14 to 15 cents, and revenue of $540.75 million aligned with estimates.
Throughout the year, Wendy’s reported adjusted EBITDA of $522.4 million and adjusted earnings of 88 cents per share. However, the outlook for 2026 appears concerning; the company anticipates adjusted EBITDA between $460 million and $480 million, and adjusted EPS of 56 to 60 cents, which falls short of analysts’ forecasts of 86 cents per share. This prompted a noticeable drop in stock prices.
The stock fluctuated between $7.08 and $7.93 during trading but rebounded by early Friday afternoon, climbing 3.65% to $7.54 by 1:43 p.m. ET.
In a statement, Wendy’s noted the importance of optimizing systems and ensuring appropriate market presence to enhance franchisee profitability and customer experience.
“Closing underperforming restaurants allows our franchisee partners to concentrate on locations with the best potential for growth,” they said.
William Stern, founder of Cardiff, emphasized that the chain’s decision to lower its outlook and close restaurants indicates a breaking point with its customers.
“For two years, these companies treated their customers like endless ATMs,” he stated. He argued that rising prices have led to declining customer engagement, saying, “The ATMs are already empty.”
Stern expressed that weak sales trends may offer a clearer warning than government inflation data. He viewed recent consumer behavior as indicative of broader economic struggles.
“Forget about CPI,” he remarked. “The real measure of inflation is fewer Americans buying fast food, highlighting exploitation within the economy.”
Repeated price hikes have backfired, in his opinion. “You can’t just keep raising prices indefinitely. You have to provide products that people want to buy,” he commented.
Many Reddit users echoed Stern’s sentiments, sharing their frustrations. One remarked, “If I’m going to pay more than $15 for a meal, I’d rather support local businesses.” Another said, “I dropped by recently to get a single burger but left after seeing the price.”
Complaints also emerged regarding the Wendy’s app, with some saying that promotions had deteriorated. One individual mentioned, “I used to eat Wendy’s three times a week, but I haven’t been in four months. Prices have increased, quality has declined, and there’s no incentive anymore.”
Concerns about portion sizes and ingredient changes were also evident, with one user stating, “If you shrink your product and raise prices, you’re going to lose customers.” Another expressed disappointment over undesirable changes in the food’s quality.
