Wendy’s said it will shut several hundred restaurants in the United States as it tries to reverse a sharper-than-expected sales decline. The company reported that global same-store sales at locations open at least a year fell 10% in the October–December quarter, a steeper decline than the 8.5% decline analysts surveyed by FactSet expected. U.S. same-store sales fell further in the period, adding pressure to accelerate changes to its domestic footprint.
The chain, headquartered in Dublin, Ohio, said it closed 28 U.S. restaurants in the fourth quarter and ended 2025 with 5,969 domestic locations. It now expects to close 5% to 6% of U.S. restaurants, about 298 to 358 sites, during the first half of 2026, focusing on underperforming units. The planned cuts come after 240 U.S. closures in 2024, which the company previously tied in part to older, outdated restaurants.
Management Pivots To “Everyday Value” After Promotions Strategy
Alongside the closures, Wendy’s is repositioning its pricing strategy toward consistent value offers rather than relying heavily on short-lived discounts. Ken Cook, the company’s interim chief executive and chief financial officer, told investors that the brand learned in 2025 that it had leaned too far into limited-time price promotions rather than building day-to-day valuecustomers can count on.
In January, Wendy’s introduced a permanent value lineup called “Biggie Deals” with three tiers: $4 options labeled “Biggie Bites,” $6 “Biggie Bags,” and an $8 “Biggie Bundle.” Cook also said the company has additional menu launches planned this year, including a new chicken sandwich. Wendy’s framed the move as part of an effort to bring back consumers who have been more cautious about dining spending after several years of elevated inflation.
Earnings Snapshot And Forecast Signal A Slow Rebuild
Wendy’s said fourth-quarter revenue fell 5.5% to $543 million, but still came in above the $537 million Wall Street forecast cited by the company. It also projected that global systemwide sales, covering both company-operated and franchised restaurants, will be flat in 2026 after declining 3.5% in 2025. Wendy’s described its U.S. turnaround plans and international expansion as key levers to stabilize performance after the recent slide.
Investors initially reacted positively to the update; Wendy’s shares rose nearly 5% in mid-day trading following the announcement. The results and the store-rationalization plan underscore the challenge facing major fast-food brands as they attempt to protect traffic while balancing pricing, promotions, and operating costs.
Competitive Value Push Spreads Across Fast Food
Wendy’s is not alone in emphasizing value. The company explicitly pointed to the broader competitive landscape, noting that rivals such as McDonald’s and Taco Bell have also leaned into value messaging and deals to attract budget-sensitive customers. In that context, Wendy’s is attempting to standardize lower-price offerings while pruning locations it views as unable to meet performance expectations.
The update was reported on February 13, 2026, as Wendy’s provided additional details on closures that it had previously signaled late last year. The company did not disclose a full list of sites slated to close, but said the expected reduction represents a mid-single-digit share of its U.S. footprint and would occur in the first half of the year.
Wendy’s next test will be whether a more consistent value platform, paired with menu news and a leaner U.S. store base, can narrow the gap between consumer expectations and what the brand delivers at the counter, while keeping franchisees and investors aligned on the pace of the turnaround.
