Wendy’s shuts down select U.S. locations and doubles down on value offerings in an effort to revive declining sales. The well-known fast-food chain, headquartered in Dublin, Ohio, is taking decisive action after reporting a disappointing fourth quarter performance.
The company revealed that global same-store sales — a key measure tracking revenue at locations open for at least a year — dropped 10% during the October to December period. Analysts had anticipated a decline, but the actual results were steeper than the projected 8.5% decrease.
In the United States, performance was even weaker, intensifying pressure on leadership to respond quickly and strategically.
Hundreds of Closures Planned Across the U.S.
Wendy’s has already begun streamlining its operations. During the fourth quarter alone, 28 restaurants were shuttered, bringing the company’s total U.S. locations to 5,969 by the end of 2025.
Looking ahead, the brand expects to close between 5% and 6% of its U.S. restaurants — roughly 298 to 358 locations — within the first half of the year. These closures follow the shutdown of 240 domestic locations in 2024. At the time, company officials acknowledged that many outlets were outdated or underperforming.
The restructuring effort is designed not only to cut costs but also to reposition the brand for long-term sustainability.
Competing in a Price-Sensitive Market
The fast-food industry has become increasingly competitive, especially as customers remain cautious about spending amid persistent inflation. Like competitors such as McDonald’s and Taco Bell, Wendy’s is placing renewed emphasis on affordability.
Company executives admitted that recent promotional strategies leaned too heavily on limited-time offers rather than consistent, everyday value. According to interim CEO and CFO Ken Cook, the company is recalibrating its approach to make value a permanent pillar rather than a temporary tactic.
In January, the chain rolled out a revamped “Biggie Deals” value menu featuring three price tiers:
$4 Biggie Bites
$6 Biggie Bags
$8 Biggie Bundle
These permanent pricing options aim to attract budget-conscious diners while strengthening brand loyalty. Additionally, Wendy’s plans to introduce new menu items this year, including a fresh take on its chicken sandwich lineup.
Revenue Results and Market Reaction
Despite falling sales volumes, Wendy’s reported quarterly revenue of $543 million, representing a 5.5% year-over-year decline. While sales dropped, revenue still exceeded analysts’ expectations of $537 million.
The company remains cautiously optimistic. Executives believe that restructuring underperforming locations, sharpening value positioning, and accelerating international expansion could stabilize performance in the coming year.
Wendy’s projects that global systemwide sales — including both company-owned and franchised restaurants — will remain flat this year. That outlook follows a 3.5% decline in systemwide sales during the previous year.
Investors responded positively to the company’s forward-looking strategy. Shares of Wendy’s climbed nearly 5% in midday trading following the announcement.
Can the Turnaround Deliver?
The coming months will be critical. By trimming weaker locations and reinforcing everyday affordability, Wendy’s hopes to reconnect with customers who have become increasingly selective about where they spend their money.
Whether the strategy succeeds will depend on execution — modernizing remaining restaurants, launching compelling new menu items, and maintaining competitive pricing without sacrificing profitability.
For now, one thing is clear: Wendy’s is making bold moves to reposition itself in a rapidly evolving fast-food landscape.
