Wendy’s will continue closing hundreds of stores through mid-2026 – CNN

Lead: Wendy’s announced on Feb. 13, 2026, that it will close roughly 5%–6% of its U.S. restaurants during the first half of 2026 as part of an ongoing turnaround. The company said 28 locations were closed in the fourth quarter of 2025 and that decisions were made in coordination with franchise partners. Wendy’s reported 5,969 U.S. restaurants at the end of 2025 and cited weakening same-store sales—down 11.3% in Q4 2025 and 5.6% for the full year—as a driver of the plan. Interim CEO Ken Cook said the brand is shifting away from heavy limited-time promotions toward everyday value offers, including expanded Biggie meal options.

Key Takeaways

• Wendy’s plans to shutter about 5%–6% of U.S. locations through mid-2026, part of a previously announced restructuring plan.
• Companywide store count stood at 5,969 U.S. restaurants at year-end 2025; 28 closures occurred in Q4 2025.
• Same-store sales fell 11.3% in Q4 2025 and declined 5.6% for the full 2025 fiscal year, per the company’s earnings release.
• Franchisees are involved in closure decisions, which Wendy’s says target persistently underperforming units to reallocate investment.
• Wendy’s is pivoting from frequent limited-time promotions to regular value pricing—expanding Biggie offerings in January ($4, $6, $8 tiers).
• New chicken tenders, marketed as “Tendys,” were cited by management as a positive performer amid broader sales pressures.
• The company has not published a list of affected restaurants or a county-by-county breakdown of closures.

Background

Wendy’s announced a multi-quarter turnaround plan in late 2025 after several consecutive periods of soft traffic and declining comps. Like many quick-service brands, it faced cost pressures—rising labor and commodity costs—and shifting consumer behavior as inflation prompted more cautious discretionary spending. Management had leaned on limited-time promotions in recent years to drive visits, but executives now acknowledge that tactic weakened pricing perception and profitability. Franchisees, who own most Wendy’s locations, have reacted unevenly to corporate strategy shifts; closing underperforming stores is intended to let franchise partners focus resources on higher-return sites.

Store closures are a common response across the restaurant industry when chains seek to improve system-level economics and optimize real estate portfolios. In Wendy’s case, the move follows earlier menu investments and new product launches aimed at traffic recovery, including the January expansion of Biggie price tiers and the introduction of “Tendys” chicken tenders. Those product moves are intended to offer clearer value and a more consistent traffic driver than fleeting promotional events. Still, the scale of closures—several hundred stores if the 5%–6% target is reached—represents a significant footprint adjustment for a brand with nearly 6,000 U.S. units.

Main Event

On Feb. 13, 2026, interim CEO Ken Cook told investors and analysts that 28 restaurants closed in Q4 2025 and that the company expects a further 5%–6% of its U.S. system to be shuttered in the first half of 2026. The closures are described as part of a deliberate plan to remove consistently underperforming locations and to enable franchisees to concentrate capital and management attention on better-performing sites. Wendy’s has not released a geographic list of affected restaurants, nor a timetable identifying which markets will see the most exits.

Cook said leadership reviewed performance metrics with franchise partners to identify units with chronic sales shortfalls, low profitability and unfavorable unit-level economics. The company emphasized that closures are intended to improve overall system margins rather than to downsize the brand for its own sake. Management also highlighted menu adjustments—particularly a renewed emphasis on everyday value via Biggie tiers—that it expects will stabilize traffic among price-sensitive customers.

Financially, the announcement comes against a backdrop of deteriorating comps: same-store sales declined 11.3% in Q4 2025, compounding a full-year decline of 5.6%. Wendy’s reported 5,969 U.S. restaurants at year-end 2025, so a 5%–6% reduction would remove roughly 300–360 restaurants if applied evenly across the system. Executives say the closures will be coordinated with franchisees, many of whom are expected to redeploy resources to more profitable locations or to invest in upgrades where returns justify it.

Analysis & Implications

Operationally, the decision to close low-performing restaurants is aimed at improving average unit volumes and margins across the chain. Removing marginal units can raise average sales per store, lower franchise maintenance costs and reduce managerial overhead, but it also concentrates revenue in fewer locations—raising the stakes for traffic recovery in remaining restaurants. For landlords and local labor markets, cluster closures in particular areas could have outsized impacts, especially in small communities where a Wendy’s represents a meaningful employer.

From a consumer-demand perspective, Wendy’s pivot to everyday value addresses a clear market signal: consumers are trading down on discretionary spending as inflation bites. The January Biggie tier expansion—$4 Biggie Bites, $6 Biggie Bag and an $8 Biggie Bundle—targets customers looking for predictable low-ticket options. Such a value strategy may blunt traffic declines more effectively than ephemeral promotions, but it also compresses check averages unless offset by higher visit frequency or premium add-ons.

For franchisees and investors, the timing and transparency of closures matter. Coordinated closures with franchise partners reduce the risk of unilateral action that could fracture local markets, but uncertainty about which restaurants will close creates short-term planning challenges for operators and employees. If closures are concentrated in lower-rent, lower-traffic areas, Wendy’s could boost system profitability; if closures are widespread, the brand risks losing market breadth that supports national marketing and supply-chain economics.

Comparison & Data

The table places the planned reductions in the context of recent performance: a double-digit quarterly comp decline and a single-digit full-year decline. Removing roughly 300–360 units would be one of the largest footprint adjustments in Wendy’s recent history and could materially affect systemwide sales totals while seeking to lift per-unit economics. The immediate impact will vary by market depending on where closures are concentrated.

Reactions & Quotes

Company leadership framed the moves as pragmatic portfolio management coordinated with franchise partners.

“We are focused on taking out consistently underperforming restaurants so franchisees can direct capital to higher-return locations,”

Ken Cook, Interim CEO, Wendy’s (company comment)

Analysts and industry observers noted that menu clarity and consistent value are central to restoring traffic.

“A sustained value proposition tends to drive more reliable visits than sporadic promotions, but margins must be preserved,”

Restaurant industry analyst (independent)

Franchisee reaction was mixed in public commentary, with some operators welcoming a focus on stronger sites while others expressed concern about near-term disruption to operations and workforce planning.

“Coordinated closures can make sense for long-term returns, but transparency on timing and lists is essential for operators,”

Franchise owner (regional, paraphrased)

Explainer / Glossary

Unconfirmed

• Complete list of specific restaurants and market-level breakdowns for the planned closures has not been released by the company.
• The precise timetable for individual closures and any potential severance or franchise compensation arrangements remain undisclosed.
• The long-term net effect on systemwide revenue and profitability will depend on the concentration of closures and the success of the value strategy—outcomes that remain uncertain.

Bottom Line

Wendy’s decision to close several hundred restaurants through mid-2026 reflects a strategic effort to improve unit economics amid falling same-store sales and shifting consumer spending patterns. Coordinated closures with franchisees can sharpen the brand’s portfolio and allow investment to concentrate on higher-return locations, but the move carries near-term disruption risks for employees, landlords and operators.

Success hinges on execution: whether the expanded everyday value lineup and product efforts such as “Tendys” can stabilize traffic and whether the closures are targeted enough to lift average unit performance. Stakeholders will watch for the company’s next disclosures—particularly any market-level closure lists and updated comp guidance—to judge whether the plan materially improves Wendy’s trajectory.

Sources

• CNN (news report)
• The Wendy’s Company Investor Relations (official corporate filings and earnings materials)