Context:

Wendy's plans to close 5% to 6% of its U.S. locations in the first half of 2026 as part of a downsizing strategy aimed at improving overall franchisee performance. Announced by interim CEO Ken Cook, this decision follows disappointing sales figures, including an 11.3% decline in same-store sales and an 8.3% drop in global systemwide sales in Q4 2025. The closures, estimated to total approximately 300 to 360 restaurants, are intended to allow franchisees to concentrate on more profitable locations. While some underperforming stores may receive upgrades, others will be permanently shut down. Moving forward, the company will continue evaluating its locations to enhance operational efficiency.

Dive Deeper:

• The closure plan was first disclosed in a quarterly earnings call on November 7, 2025, with Cook indicating that the goal was to address underperforming locations that negatively impacted franchisee finances.

• Wendy's had around 5,969 locations in operation at the end of 2025, meaning the expected closures would range from 300 to 360 stores, although the specific locations have yet to be announced.

• In the last quarter of 2025, Wendy's had already closed 28 restaurants as part of its larger downsizing initiative.

• The company reported a total global systemwide sales decline of 3.5% for 2025, alongside a 5.6% decrease in same-store sales, reflecting challenges in maintaining competitiveness in the fast-food market.

• Cook emphasized the importance of closing underperforming locations to enable franchisees to focus resources on stores with the highest potential for profitability.

• To support struggling franchisees, Wendy's is considering both equipment upgrades and transferring ownership of some locations to new operators.

• The company's ongoing evaluation of its restaurant portfolio will continue to influence future operational strategies and potential further closures.