Wendy's to Close Up to 350 Restaurants After 11.3% U.S. Sales Drop
Wendy's reported global system-wide sales fell 8.3% constant currency in Q4, with U.S. same-restaurant sales plunging 11.3% as marketing spend was slashed and customer traffic declined. The chain plans to shutter 5-6% of its 5,831 U.S. restaurants (292-350 units) and scale back its underperforming breakfast rollout.
1. Severe Same-Store Sales Decline
In Q4, Wendy's global system-wide sales declined 8.3% on a constant currency basis, while U.S. same-restaurant sales plunged 11.3%. The drop was driven by a significant reduction in marketing spend and a meaningful loss of customer traffic, only partially offset by a higher average check.
2. Planned Store Closures
To counter persistent traffic erosion and protect franchisee profitability, Wendy's will close 5%–6% of its 5,831 U.S. restaurants, equivalent to roughly 292-350 underperforming units. This retrenchment aims to stabilize the broader system and preserve long-term economics for remaining locations.
3. Breakfast Initiative Scale Back
Wendy's will scale back its breakfast rollout, which launched systemwide on March 2, 2020, as pandemic lockdowns curtailed drive-thru traffic. The chain is refocusing resources on core dayparts after the breakfast program failed to gain the expected traction amid evolving traffic patterns.