Wendy’s plans to close hundreds of U.S. restaurants as more locations shut their doors

Wendy’s announces closures across the U.S.

Wendy’s has said it plans to close about 5 to 6 percent of its U.S. locations by mid-2026, an estimated 298 to 358 restaurants.

The fast-food chain operates just under 6,000 U.S. locations and is taking this step as part of a broader strategy to restructure and stabilize its domestic operations under its Project Fresh turnaround plan.

The move comes amid declining U.S. same-restaurant sales and softer traffic, putting pressure on profits and prompting a refocus on stronger, higher-performing restaurants.

Timeline for U.S. restaurant closures

Twenty-eight Wendy’s restaurants were already shuttered in the last quarter of 2025, with the remaining closures expected in the first half of 2026.

The plan was first revealed in November 2025, and franchisees are actively working with the company to identify underperforming locations.

Many of these sites are in regions where foot traffic has dropped, and competition from other fast-food chains is intense.

U.S. same-store sales and traffic pressures

U.S. same-store sales for Wendy’s fell 11.3 percent in the fourth quarter of 2025 and 5.6 percent for the full year, according to the company’s earnings report.

Analysts note that Wendy’s has been underperforming its major burger rivals, which still report positive comparable sales growth, adding to pressure on traffic and revenue.

They also point to a broader slowdown in the fast-food sector, as inflation-weary customers trade down, seek heavier discounts, or dine out less—forcing many chains to rethink pricing, menu strategy, and location performance in both urban and suburban markets.

Criteria for closures in the U.S.

Wendy’s is targeting consistently underperforming restaurants, including many older units in outdated buildings or weak trade areas. Executives have said some locations “do not elevate the brand” and are a drag on franchisee financial performance.

The company has not released a public list of specific U.S. addresses slated for closure.

Instead, corporate leadership says the goal is to close underperforming units so that franchisees can invest more capital and resources in their remaining restaurants and strengthen results at stronger locations.

Benefits for franchisees and U.S. restaurants

Closing underperforming locations frees up capital for franchisees to invest in remaining restaurants. Funds are being used for equipment upgrades, digital menu boards, and new restaurant builds in stronger markets.

The move aims to improve restaurant-level profitability and the customer experience over time. Many franchisees see this as an opportunity to modernize U.S. stores in busy areas while optimizing operations in regions where traffic and sales are under pressure.

Executive perspective on closures

Interim CEO Ken Cook has said the closure plan targets a mid single-digit percentage of U.S. restaurants—about 5% to 6% of the system, or roughly 298 to 358 locations out of nearly 6,000.

The closures began with 28 U.S. restaurants shut in the fourth quarter of 2025 and are expected to occur primarily in the first half of 2026.

Cook has framed the strategy as a way to strengthen the system, boost sales and profitability at nearby locations, and help franchisees invest more capital into strong stores, as Wendy’s adapts to shifting customer preferences and traffic patterns.

Refined closure target

After closing 28 U.S. restaurants in the fourth quarter of 2025, Wendy’s updated its guidance to say it would close about 5% to 6% of its U.S. locations, roughly 298 to 358 restaurants, primarily in the first half of 2026.

Franchisees are working with the company as part of Project Fresh to evaluate underperforming units versus locations that warrant reinvestment.

The goal is to strengthen Wendy’s U.S. footprint by closing stores that no longer meet performance standards and concentrating resources in stronger markets.

Precedent from previous closures

In 2024, Wendy’s announced closures affecting about 240 U.S. restaurants—140 outdated locations in underperforming areas, on top of 100 closures already announced earlier that year. Those cuts, largely focused on older, weaker units, set a precedent for the accelerated 2025–2026 closure strategy.

The underlying aim is to free capital for reinvestment in stronger regions, especially in urban and suburban markets, where upgraded buildings, advanced technology, and marketing can have the greatest impact.

By trimming underperforming stores and modernizing remaining sites, Wendy’s hopes to improve service, protect profitability, and stay competitive in a slower fast-food traffic environment.

Menu and traffic adjustments

Declines in traffic in some U.S. regions are forcing Wendy’s to rethink its pricing and menu strategies. Breakfast sales are lagging at some locations, prompting later openings to better match local demand.

While the chain is closing underperforming stores, popular offerings like Biggie Deals remain available nationwide. These adjustments aim to maintain customer loyalty in key markets while ensuring that profitable locations continue to operate efficiently.

Capital reinvestment in U.S. locations

Franchisees gain flexibility to close underperforming stores and reinvest savings in remaining restaurants. Capital is being directed toward technology upgrades, modern equipment, and improved customer experiences.

By concentrating resources on stronger units, Wendy’s ensures these U.S. locations can maintain profitability and continue to grow. This strategy allows high-traffic restaurants in major cities and suburban hubs to benefit from enhanced service.

Domestic closures support global strategy

Optimizing the U.S. footprint supports Wendy’s global expansion plans. Resources freed from domestic closures are being reinvested to strengthen operations abroad while maintaining core menu offerings at home.

Customers can still access Biggie Deals and other favorites in unaffected U.S. locations. This dual approach ensures the brand remains competitive domestically while pursuing international growth.

Industry-wide context

Wendy’s closures reflect broader challenges across the U.S. fast-food sector, including value wars, declining traffic, and consumer trade-down behavior.

Many chains are rationalizing portfolios to focus on profitable locations while responding to shifting consumer habits.

By strategically closing underperforming units, Wendy’s joins other national chains in optimizing the domestic market.

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Completing the initial restructuring phase

The first half of 2026 is expected to see the bulk of Wendy’s planned U.S. restaurant closures—about 5% to 6% of its domestic system—completed. Franchisees are simultaneously executing upgrades in high-potential locations, including technology and equipment investments under Project Fresh.

Data on customer traffic, sales, and profitability will continue to guide additional optimization beyond this initial wave. That ongoing review helps the chain focus on higher-performing areas in cities and suburban regions while closing stores that no longer contribute meaningfully to revenue.

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Would you be impacted by a nearby Wendy’s closing, or are you excited about improvements at remaining locations? Tell us in the comments.

This slideshow was made with AI assistance and human editing.

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