Wendy’s to Shutter Up to 358 U.S. Locations as Same-Store Sales Crater 10%

Wendy's to Shutter Up to 358 U.S. Locations as Same-Store Sales Crater 10%

Wendy's announced Friday it will close as many as 358 U.S. restaurants in the first half of 2026—up to 6% of its domestic footprint—after fourth-quarter same-store sales plunged 10%, significantly worse than Wall Street's already-grim expectations. The Dublin, Ohio-based chain's global same-store sales decline exceeded analyst forecasts of an 8.5% drop, with U.S. locations performing even worse than the global average.

For CFOs watching the quick-service restaurant sector, Wendy's results underscore a broader reckoning: inflation-weary consumers are pulling back on dining out, and the promotional tactics that worked in previous downturns aren't landing the same way. The company's interim CEO and CFO Ken Cook admitted on Friday's investor call that Wendy's "swung the pendulum too far towards limited-time price promotions instead of everyday value" in 2025—a tactical misstep that's now forcing an accelerated restructuring.

The closures represent the second wave of a systematic pruning. Wendy's already shuttered 240 U.S. locations in 2024, citing outdated facilities, then closed another 28 in the fourth quarter of 2025. The company ended last year with 5,969 U.S. restaurants, meaning the planned first-half closures of 298 to 358 locations would reduce its domestic presence by roughly 5% to 6% in just six months. For a 57-year-old brand, that's an unusually aggressive contraction in a compressed timeframe.

Despite the sales collapse, Wendy's reported fourth-quarter revenue of $543 million, down 5.5% year-over-year but slightly above the $537 million analysts anticipated. The stock rose nearly 5% in mid-day trading Friday—a counterintuitive reaction that suggests investors view the closures as overdue cost discipline rather than existential crisis. Wall Street, it seems, appreciates a CFO willing to take the write-downs now rather than bleed cash on underperforming assets.

The company's turnaround strategy centers on what every fast-food chain is suddenly rediscovering: permanent value menus. In January, Wendy's introduced "Biggie Deals" with three price tiers—$4 Biggie Bites, $6 Biggie Bags, and an $8 Biggie Bundle—abandoning the limited-time-offer carousel that Cook now admits failed to move the needle. The chain is also banking on new product launches, including an unspecified chicken sandwich, to drive traffic.

Wendy's management expressed confidence that its U.S. restructuring combined with international expansion will stabilize performance in 2026. The company projects flat global systemwide sales this year—which includes both company-owned and franchised locations—after a 3.5% decline in 2025. That's a modest goal, but given the fourth quarter's double-digit same-store sales drop, even holding the line would represent meaningful stabilization.

The closures put Wendy's in the same boat as McDonald's, Taco Bell, and other major chains scrambling to recalibrate their value propositions. The difference: Wendy's is moving faster and more aggressively than most competitors, closing nearly 600 locations across two years while simultaneously overhauling its pricing architecture. Whether that speed reflects strategic clarity or desperation will become clear by mid-year, when the latest round of closures is complete and the Biggie Deals menu has had time to prove itself.

For finance leaders, the subtext is unavoidable: when your interim CEO is also your CFO, and he's publicly admitting the previous year's promotional strategy was fundamentally wrong, you're watching real-time crisis management. The question isn't whether Wendy's needed to act—the 10% same-store sales drop answered that. The question is whether closing 6% of your locations in six months gives you enough runway to fix the underlying problem, or just buys you another quarter before the next round of bad news.