Wendy’s to Close Hundreds of Underperforming U.S. Restaurants by Mid-2026

Wendy’s plans to shutter between 5% and 6% of its U.S. restaurants in the first half of 2026 as part of a turnaround plan first announced in November 2025, company leaders said. The move targets “consistently underperforming restaurants” across a system that counted 5,969 U.S. locations at year-end 2025.

Same-store sales fell 11.3% in the fourth quarter of 2025 and were down 5.6% for the full year 2025, a slump company executives have cited as a driver of the rationalization. Twenty-eight stores closed during the fourth quarter as the chain began the program, and sources describe the total planned closures as “hundreds” of locations to be completed through mid-2026.

Interim CEO Ken Cook framed the cuts as a franchise-focused strategy, saying that the company is conducting store reviews with local owners. “By closing consistently underperforming restaurants, we are enabling our franchise partners to increase focus on locations with the greatest potential for profitable growth,” Cook said. He added that the company is working “on a store-by-store basis” with franchisees to make collaborative decisions across the U.S. system as One Wendy’s.

Operationally, Wendy’s describes a collaborative review process with franchisees to identify high-maintenance or low-revenue properties and, in some cases, relocate away from sites that are costly to operate. Company spokespeople and investor materials have not published an official list of affected restaurants or provided a precise head count beyond the 5%–6% guidance, and multiple reports note that specific city- or state-level lists are not available.

The closures accompany a strategic shift in menu and pricing. Management says Wendy’s will move toward everyday value and away from heavy reliance on limited-time promotions; in January the chain expanded Biggie offerings to include $4 Biggie Bites, a $6 Biggie Bag, and an $8 Biggie Bundle. New chicken tenders marketed as “Tendys” have been singled out as performing well even as comps decline. The company has also indicated more flexibility on restaurant schedules, allowing later openings as breakfast sales lag.

The company began closing locations in late 2025 and plans most of the remaining actions through the first half of 2026, officials said. With 5,969 U.S. restaurants at the end of last year, the announced 5%–6% reduction represents a system-level retrenchment rather than a temporary measure, according to company commentary describing the plan as a core element of the November 2025 turnaround effort.

Unresolved details include whether closures will be permanent shutdowns, conversions, or relocations in specific markets and what employment impacts will follow; Wendy’s has not released those breakdowns. Management advisers and franchisees continue to evaluate stores on a case-by-case basis as the chain moves to shore up revenues after heavy declines in 2025.