Wendy’s sales slump deepens as turnaround plan targets restaurant recovery

Wendy’s is shrinking parts of its U.S. footprint while asking the rest of the system to recover faster. Same-store sales in the United States fell 7.8% in the first quarter, April comps were down 6.4%, and the company ended the period with 5,805 U.S. restaurants, 174 fewer than it had at the end of the third quarter of 2025.

That decline landed alongside $540.6 million in total revenue and $111.3 million in adjusted EBITDA, numbers that show the chain is still producing cash even as traffic weakens. Wendy’s also reported U.S. systemwide sales growth of minus 7.3%, a sign that the pressure is not limited to one part of the business. For restaurant workers, that matters because weak sales usually show up first in tighter schedules, stricter labor targets, and more pressure on managers to keep lines moving with fewer hands on the clock.

The company is trying to answer that squeeze with Project Fresh, a turnaround plan unveiled in October 2025 that centers on brand revitalization, system optimization, operational excellence, and reallocation of capital and resources. In practice, that has meant new Biggie Deals at $4, $6, and $8, upgraded premium hamburgers, new chicken sandwiches, a revised spicy chicken sandwich, and changes to condiments and buns. Those kinds of menu resets can lift check averages, but they also add complexity in back-of-house prep, training, and service timing for crews already working through labor shortages and high turnover.

Wendy’s said its operational push has already improved order accuracy and customer satisfaction measures, and FreshAi, its drive-thru technology, has expanded from a two-state pilot in 2024 to a nationwide rollout that was processing tens of thousands of orders a day by May 2025. That may help speed the window and reduce some order-entry friction, but it also raises expectations for managers and franchise teams to run cleaner shifts, keep equipment ready, and hold service speed while the menu changes around them.

The harder part for workers is the shrinking store base. QSR Magazine reported in November 2025 that Wendy’s expected U.S. closures in the mid-single-digit percentage range, or roughly 200 to 300 restaurants, beginning later in 2025 and continuing into 2026. The brand had already closed nearly 200 U.S. locations in 2024. Interim CEO Ken Cook said those closures should free up cash for franchisees to invest in the rest of their portfolio, including kitchen equipment, digital menu boards, and new units, or to transfer stores to better-suited operators.

At the same time, Wendy’s is still expanding elsewhere. The company entered into a franchise agreement to build up to 1,000 restaurants across China over the next 10 years, and it continued adding units globally. That contrast shows the shape of the turnaround: more growth overseas, but a leaner, more demanding operating model at home, where every remaining U.S. restaurant is being asked to carry more of the recovery.