Wendy’s becomes latest fast food joint to close hundreds of locations

Fast-food giant Wendy's is embarking on a significant restructuring, announcing the closure of hundreds of its US restaurants and a renewed focus on value deals following a disappointing fourth-quarter performance.

The Dublin, Ohio-based company revealed plans to shutter between 5 per cent and 6 per cent of its US outlets – equating to 298 to 358 locations – in the first half of this year.

This follows the closure of 28 restaurants in the final quarter of last year, bringing its US footprint to 5,969 locations by the end of 2025. These actions come on top of 240 US Wendy’s locations that ceased operations in 2024, with the 57-year-old chain acknowledging many of its sites were simply "out of date."

The strategic shift comes after global same-store sales, for locations open at least a year, plummeted by 10 per cent in the October-December period, falling short of analysts' expectations of an 8.5 per cent drop. US same-store sales experienced an even steeper decline. Despite this, the company's revenue for the fourth quarter, at $543m, slightly exceeded forecasts, though it represented a 5.5 per cent decrease.

In response, Wendy's, much like rivals McDonald’s and Taco Bell, is intensifying its efforts to attract "inflation-weary customers" through more competitive pricing. Ken Cook, Wendy’s interim CEO and chief financial officer, stated in an investor call: "One learning from 2025 around value, we swung the pendulum too far towards limited-time price promotions instead of everyday value." The company has already launched a permanent "Biggie Deals" value menu, featuring three price points: $4 Biggie Bites, $6 Biggie Bags and an $8 Biggie Bundle. New products, including a chicken sandwich, are also anticipated this year.

Despite the challenges, Wendy's expressed confidence that its US turnaround plans and international expansion will help reverse its sales decline. The company projects global systemwide sales, encompassing both company-owned and franchised restaurants, to remain flat this year, an improvement from the 3.5 per cent fall recorded last year. Investors reacted positively, with Wendy's shares climbing nearly 5 per cent in mid-day trading on Friday.