Wendy’s to close 300-600 U.S. restaurants while adding 62 in Mexico
Wendy’s systemwide sales declined 5.2% in 2025, prompting plans to close 300 to 600 U.S. restaurants—5% to 6% of domestic outlets—in the first half of 2026. Concurrently, the company secured two franchise deals to open 62 new locations in Mexico by year-end across Mexico City, Hidalgo, Morelos, Sinaloa and Durango.
1. U.S. Sales Decline and Closure Plan
Wendy’s reported a 5.2% drop in systemwide sales for 2025 and announced plans to shutter 300–600 underperforming domestic restaurants in the first half of 2026, representing roughly 5%–6% of its 5,969 U.S. locations at year-end, in an effort to streamline operations and boost overall margins.
2. Mexico Expansion Agreements
The company finalized two franchise partnerships to add 50 restaurants in the Mexico City region with AJ Group and 12 outlets in northern states including Sinaloa and Durango with WS Pacific, all slated to begin operations by year-end to capitalize on rising consumer demand.
3. Strategic Rebalancing Effort
By reducing its U.S. footprint and scaling its presence in Mexico, Wendy’s aims to rebalance its global portfolio, shifting focus toward high-growth international markets to offset domestic challenges and drive long-term expansion.