Wendy's Plans to Close Up to 360 Underperforming U.S. Restaurants in H1 2026
Wendy's will shutter 5% to 6% of its nearly 5,969 U.S. restaurants—roughly 300 to 360 stores—in the first half of 2026, following 28 closures in Q4 2025. The chain reported an 11.3% same-store sales decline and an 8.3% drop in global systemwide sales in Q4 2025.
1. Planned Store Reductions
Wendy's announced it will close 5% to 6% of its approximately 5,969 U.S. restaurants in the first half of 2026, equating to about 300 to 360 locations. The company had already shuttered 28 restaurants during the last quarter of 2025 as part of this targeted downsizing initiative.
2. Sales Performance Challenges
In the fourth quarter of 2025, Wendy's same-store sales fell by 11.3%, while global systemwide sales declined by 8.3%. Over the full year 2025, systemwide sales were down 3.5% and same-store sales dropped 5.6%, highlighting persistent performance issues at underperforming sites.
3. Strategic Rationale and Next Steps
Interim CEO Ken Cook explained that closures will eliminate consistently underperforming restaurants, allowing franchisees to concentrate on higher-potential locations. The company plans to assess each restaurant on a store-by-store basis, with options including technology upgrades, operator transfers, or full shutdowns to optimize overall network profitability.