Wendy’s Plans Store Closures Amid Declining Sales

Wendy’s announced on Friday that it will shut down between 298 and 358 locations across the United States as part of a shift to emphasize everyday value, largely due to declining sales figures and a disappointing fourth quarter.

The company reported a significant drop in domestic same-store sales, which decreased by 11.3% during the fourth quarter. On a global scale, same-store sales fell by 10.1%, surpassing the anticipated 8.5% decline forecasted by analysts.

Wendy’s first revealed intentions to close less profitable stores back in November. During an earnings call, interim CEO and CFO Ken Cook elaborated on the details of the closures.

Cook noted that the restaurant had already closed 28 locations in the last quarter, reducing the total number of U.S. outlets to 5,969. The company now expects to close 5% to 6% of its domestic stores, which translates to roughly 298 to 358 closures, by mid-2026.

This closure initiative is part of Wendy’s “Project Fresh,” a restructuring plan introduced in October. The company aims to revitalize its brand, stimulate growth, and enhance profitability, with a focus on offering better value to consumers grappling with rising living costs.

“We’ve realized that our approach to value has tilted too much toward temporary price promotions instead of consistent everyday value,” Cook mentioned during the call.

In comparison, McDonald’s has consistently emphasized value, with its U.S. same-store sales rising by 6.8% in the fourth quarter, marking the largest jump in nearly two years. In response, Wendy’s rolled out a new permanent value menu named Biggie Deals in January, featuring items priced at $4, $6, and $8.

Wendy’s leadership has labeled 2026 as a “year of reinvention” for the brand. Cook stated, “Our goal this year is to regain relevance and rebuild customer trust through careful execution and targeted marketing.”

Overall, the company believes that its U.S. value strategy will help counterbalance any weaknesses in domestic performance, with expectations for global system-wide sales to stay flat throughout 2026.

Despite a 5.5% decline in sales to $543 million during the fourth quarter, Wendy’s still exceeded analyst predictions, which had estimated sales at $537 million.