Wendy’s will shutter hundreds of U.S. restaurants in early 2026 as the fast-food chain struggles with plummeting sales.
The company reported that same-store sales dropped 11.3% domestically during the fourth quarter, prompting aggressive cost-cutting measures.
Interim CEO Ken Cook told investors Friday the chain expects to close 298 to 358 locations in the first half of 2026. That represents roughly 5% to 6% of Wendy’s 5,959 U.S. restaurants.
The closures accelerate Wendy’s “Project Fresh” turnaround strategy, launched in October 2025 to “revitalize the brand, reignite growth, [and] accelerate profitability,” Fox Business reported.
Cook acknowledged the company misread customer priorities last year.
“Learning from 2025 around value, we swung the pendulum too far towards limited-time price promotions instead of everyday value,” he said during a call with investors.
The admission comes as rival McDonald’s posts strong results from its value-focused approach. McDonald’s U.S. sales jumped 6.8% in the fourth quarter, marking its biggest increase in two years.
McDonald’s CEO Chris Kempczinski credited the chain’s focus on “delivering leadership in value and affordability, and our efforts are working,” per Fox.
Wendy’s responded in January by launching “Biggie Deals,” a permanent value menu with options priced at $4, $6, and $8.
Cook called 2026 a “rebuilding year” for Wendy’s and previewed new menu items, including a chicken sandwich and “cheesy bacon cheeseburger.”
“Our focus this year is restoring relevance and rebuilding trust with customers through disciplined execution and marketing,” he said, per Fox.
The chain has already closed 28 locations in the final quarter of 2025 as part of its restructuring efforts.
