Wendy's closing hundreds of U.S. restaurants as sales plunge
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A customer orders food at a Wendy's restaurant in New York on Nov. 13. Photo: ZAMEK/VIEWpress
The fast-food value wars are taking a bite out of Wendy's, as the chain plans to close hundreds of U.S. restaurants amid plunging sales.
Why it matters: Wendy's is one of the largest restaurant chains in the U.S. with nearly 6,000 locations.
Driving the news: Interim CEO Ken Cook said Friday that the company will shutter 5%–6% of its U.S. restaurants, providing more details on a closure plan first teased in November.
- That includes 28 locations that closed in the fourth quarter. The rest will shut down in the first half of 2026, Cook said on an earnings call.
- Wendy's is currently "working with our franchisees to evaluate restaurants on a store-by-store basis and make collaborative decisions to optimize performance across the U.S. system," Cook said.
- The company is also expected to allow franchisees to stop offering breakfast because "we recognize it may not work in every restaurant," Cook said.
By the numbers: Wendy's on Friday reported a crushing 11.3% decline in U.S. same-restaurant sales in the fourth quarter.
- That's the worst quarterly performance for Wendy's since at least 2007, according to Restaurant Business Magazine editor-in-chief Jonathan Maze.
- Same-restaurant sales were down 5.2% for the year in the U.S.
The big picture: The fast-food industry is engaged in a feverish value competition, with Wendy's arch rival McDonald's making especially aggressive plays to attract customers.
- McDonald's on Wednesday reported a 6.8% increase in same-store sales in the U.S.
- McDonald's has been absorbing part of the cost of $5 and $8 meal promotions to win back cash-strapped diners. It's also benefited from popular promotions, including the return of McDonald's Monopoly game and its holiday Grinch meal.
Zoom in: Wendy's is also grappling with turmoil at the top after CEO Kirk Tanner left in the summer to become CEO of Hershey.
- Cook, who is also CFO, said 2026 "will be a rebuilding year."
Yes, but: Fast-food companies are well-positioned to capture consumer spending as people trade down from sit-down restaurants and fast-casual dining.
- "High-income household traffic remains the industry's growth engine," Bank of America analyst Sara Senatore wrote Friday in a research note.
What's next: Wendy's plans to roll out new chicken sandwiches "in a couple of months" after recently delaying the revamp, Cook said.
- It's also launching a new cheesy bacon cheeseburger next week, "and you'll continue to see hamburger innovation as we move throughout the year," Cook said.
Editor's note: This report was updated with the number of Wendy's U.S. restaurants reported in the fourth quarter.
