Fast food giant Wendy’s announced Friday it will close between 298 and 358 U.S. restaurants as it pivots toward everyday value offerings amid declining sales and a weaker-than-expected fourth quarter.
Wendy’s reported domestic same-store sales — sales at restaurants open for at least one year — declined 11.3% in the fourth quarter, according to The Hill. Global same-store sales fell 10.1%, worse than the 8.5% drop analysts polled by FactSet had expected. (RELATED: Fat Brands Files Chapter 11 Bankruptcy After Attempting Massive Expansion)
Wendy’s first announced plans to close underperforming locations in November. During Friday’s earnings call, interim CEO and CFO Ken Cook provided additional details on the scope of closures.
Cook said the company closed 28 restaurants in the fourth quarter and ended 2025 with 5,969 U.S. locations. Wendy’s expects to close 5% to 6% of its domestic footprint — roughly 298 to 358 locations, including the 28 already shuttered — by mid-2026.
The closures are part of Project Fresh, a turnaround plan Wendy’s unveiled in October. The company described the strategy as “designed to revitalize the brand, reignite growth, and accelerate profitability.” Wendy’s plans to emphasize value to win back inflation-weary customers squeezed by higher living costs.
“One learning from 2025 around value, we swung the pendulum too far towards limited-time price promotions instead of everyday value,” Cook said during the call.
McDonald’s, which has focused heavily on value, reported U.S. same-store sales rose 6.8% in the fourth quarter — the largest increase in roughly two years. Wendy’s followed suit in January with a permanent value menu called Biggie Deals, featuring $4, $6, and $8 price points.
also okc receives a first round pick somehow @ShamsCharania pic.twitter.com/WUoYrt9zY7
— Wendy’s (@Wendys) February 5, 2026
Wendy’s leadership characterized 2026 as a “rebuilding year” for the company.
“Our focus this year is restoring relevance and rebuilding trust with customers through disciplined execution and marketing,” Cook said.
The company expressed confidence in its U.S. value strategy, with international growth helping offset domestic weakness. Wendy’s expects global systemwide sales — which include both company-owned and franchised locations — to remain flat in 2026.
Wendy’s revenue fell 5.5% in the fourth quarter to $543 million, though the figure still topped analyst expectations of $537 million, the company said.