Wendy's is closing hundreds of U.S. restaurants as domestic sales slide

"Total same-store sales fell 10.1% over the quarter, driven by performance in the U.S., where same-stores sales were down 11.3% compared to 2% at international locations. Overall, global systemwide sales were $3.4 billion, a decrease of 8.3% from the previous quarter. According to Wendy's interim CEO Ken Cook, one way the company is addressing this trend is through ongoing "system optimization," which includes the closure of "consistently underperforming restaurants" to allow franchisee partners to focus on more profitable locations."

"Wendy's first announced plans to shutter several hundred U.S. stores in November 2025. At the time, Cook told investors that some current restaurants "do not elevate the brand" and are "a drag from a franchisee financial performance perspective." Based on today's update, some of those closures have already taken place: Cook shared that 28 restaurants closed during the fourth quarter of 2025. In total, he added, the company expects to close 5% to 6% of its total U.S. restaurants, with all remaining closures slated for the first half of 2026."

Wendy's U.S. same-store sales fell 11.3% in the fourth quarter while international same-store sales rose 2%. Total same-store sales declined 10.1% for the quarter and global systemwide sales were $3.4 billion, down 8.3% from the prior quarter. The company closed 28 restaurants in Q4 2025 and plans to shutter 5% to 6% of U.S. locations — roughly 300 to 360 restaurants — with remaining closures scheduled for the first half of 2026. The closures are part of a "system optimization" effort to remove consistently underperforming restaurants in partnership with franchisees. Shares rose about 5% in early trading even as the stock nears 2013 lows.

Read at Fast Company