Wendy's Restaurant Closures and Turnaround Strategy

Reference TimelineLast updated FEB 27
SUMMARY

Wendy's announced on February 13, 2026, that it would close an additional 298 to 358 U.S. restaurants in the first half of 2026, bringing the total closures to over 600 since 2024, as part of its "Project Fresh" turnaround strategy. As of February 16, 2026, the company reported a 5.5% year-on-year decline in Q4 2025 revenue to $543 million and a 10.1% decrease in global same-store sales. These closures, representing 5% to 6% of its U.S. locations, aim to improve franchisee profitability and strengthen the U.S. business amidst declining domestic sales, with the company also introducing permanent 'Biggie Deals' and an improved chicken sandwich lineup.

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2026

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Wendy's is implementing "Project Fresh," a turnaround plan that includes menu innovation, such as an improved chicken sandwich lineup, and the closure of 5% to 6% of its U.S. restaurants, totaling 298 to 358 locations, in the first half of 2026. The company is also reportedly undervalued and could face a takeover bid. These efforts aim to improve franchisee profitability and strengthen the U.S. business amidst declining domestic sales.

via Food Institute

Wendy's reported Q4 2025 results showing a 5.5% year-on-year decline in revenue to $543 million, with global same-store sales down 10.1%. The company's net income for the quarter was $26.5 million, a significant decrease from the previous year. These results underscore the ongoing challenges in the U.S. market, despite international growth.

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Wendy's plans to continue closing restaurants through mid-2026 as part of its turnaround strategy. Approximately 5-6% of its U.S. restaurants are slated for closure in the first half of the year. These decisions are made in collaboration with franchisees to allow them to focus on more profitable locations. The company reported an 11.3% decline in U.S. same-store sales for the last quarter of 2025.

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In its Q4 2025 earnings report, Wendy's disclosed that global systemwide sales decreased by 8.3% to $3.4 billion. The company added 34 net new restaurants in the quarter, bringing the total for the year to 157. Despite U.S. same-restaurant sales declines, international sales grew, and the company returned $329.6 million to shareholders.

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Wendy's reported a weaker-than-expected fourth quarter of 2025, with global same-store sales falling 10%. The company announced it would close an additional 298 to 358 U.S. restaurants in the first half of 2026, on top of 240 closures in 2024 and 28 in Q4 2025. The strategy includes a renewed focus on everyday value, introducing permanent 'Biggie Deals.'

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2025

6 updates

Wendy's confirmed plans to close hundreds of U.S. stores in 2026 as part of a strategy to revive its domestic business, which has seen same-store sales decline by 4.7% in its latest fiscal quarter. The company stated that a mid-single-digit percentage of its U.S. restaurants would close, potentially numbering between 241 and over 350 locations. This move is intended to boost sales and profitability at remaining locations.

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Further details emerged regarding Wendy's plan to close hundreds of U.S. restaurants, with reports suggesting 200 to 350 locations could be axed. These closures, expected to begin in late 2025 and continue into 2026, target 'consistently underperforming' sites to 'strengthen the system' and improve franchisee profitability. This follows a similar announcement of 140 closures the previous year.

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Wendy's announced plans to close between 200 and 350 underperforming U.S. restaurants, a mid-single-digit percentage of its locations, by the end of 2025 and continuing into 2026. This was revealed during the company's Q3 earnings call, where it reported beating analyst expectations for profit and revenue. The closures are part of the 'Project Fresh' initiative to drive growth and long-term value.

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Wendy's opened 74 new restaurant locations in the first quarter of 2025, including 28 in the U.S., as part of an effort to modernize operations and improve customer experience. This expansion was supported by investments in digital infrastructure and the 'Global Next Gen' restaurant design. These openings followed the closure of approximately 140 underperforming locations in 2024.

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Wendy's outlined a long-term strategy at its 2025 Investor Day, planning to add 1,000 net new restaurants globally by 2028, increasing its total to between 8,100 and 8,300. This expansion would focus on menu innovation, digital integration, and operational excellence, with the international segment expected to account for 70% of overall growth.

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2024

1 update

Wendy's announced plans to accelerate some restaurant closures, bringing forward planned closures from 2025 into the current year. This decision was made to address outdated and underperforming locations, with approximately 140 additional units targeted for closure. The company aimed to offset these closures with new restaurant openings, keeping net unit growth approximately flat for the year. The goal was to replace these with higher-volume restaurants and improve overall sales and profitability.

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Story began · 1 year, 4 mo ago