Context:

Wendy’s announced plans to close 298 to 358 U.S. restaurants as part of its Project Fresh turnaround strategy, following a significant decline in same-store sales of 11.3% domestically and 10.1% globally in the fourth quarter. The fast food chain's shift towards everyday value offerings aims to regain customers affected by rising costs, a response to competitor McDonald's, which reported a 6.8% increase in its own same-store sales. Interim CEO Ken Cook acknowledged that the company had focused too heavily on limited-time promotions instead of consistent value, and he characterized 2026 as a year for rebuilding customer trust and relevance. Wendy’s expects flat global systemwide sales in 2026, despite a slight revenue increase over analyst expectations.

Dive Deeper:

• Wendy's closed 28 restaurants in Q4 2025 and ended the year with 5,969 U.S. locations, part of a broader strategy to close 5% to 6% of its footprint by mid-2026.

• The company's global same-store sales drop of 10.1% was notably worse than the 8.5% decline analysts had anticipated, highlighting significant operational challenges.

• Project Fresh was unveiled in October 2025 as a comprehensive plan to revitalize Wendy's brand and profitability through enhanced marketing and operational adjustments.

• In response to its declining performance, Wendy's introduced a permanent value menu called Biggie Deals in January 2026, offering items at $4, $6, and $8 price points.

• Despite a revenue drop of 5.5% in Q4 to $543 million, Wendy's surpassed analyst expectations of $537 million, suggesting some resilience during tough market conditions.

• The emphasis on value is a strategic pivot intended to appeal to consumers facing inflation, a demographic that McDonald's has successfully attracted with its pricing strategies.

• Wendy's leadership expressed optimism about its U.S. value strategy, while also relying on international growth to mitigate domestic weaknesses.