Wendy's, the renowned fast-food chain, has unveiled a significant restructuring plan that will see the closure of hundreds of its U.S. locations in the coming months. The company aims to shutter between 5% and 6% of its restaurants by the mid-point of 2026, as part of a broader strategic turnaround initiative.
Strategic Turnaround Plan Details
Interim CEO Ken Cook disclosed this move during the company's third-quarter earnings call in November, labeling it a "strategic turnaround plan" for U.S. stores. Cook emphasized that the closures will target "consistently underperforming restaurants" to refocus efforts on locations with higher profitability potential.
In the fourth quarter of last year, Wendy's already closed 28 stores as a preliminary step in this direction. The company has not yet released a specific list of the restaurants slated for closure, leaving customers and employees awaiting further details.
Declining Sales and Market Challenges
Wendy's has been grappling with persistent sales declines in the U.S. market. According to the company's earnings report, same-store sales plummeted by 11.3% during the last quarter of 2025, with a 5.6% slide for the entire year, as reported by CNN. This downturn reflects broader challenges in the fast-food sector, including inflationary pressures and shifting consumer behaviors.
Cook attributed part of the struggle to an overemphasis on limited-time promotions. In response, Wendy's is pivoting towards maintaining everyday value, exemplified by recent changes to its Biggie meals. In January, the chain introduced new Biggie offerings in the U.S., such as $4 Biggie Bites, a $6 Biggie Bag, and an $8 Biggie Bundle, designed to attract value-conscious consumers who are cutting back on discretionary spending like dining out.
Impact on Canadian Operations
While U.S. locations face closures, Wendy's has clarified that its Canadian restaurants will not be affected by this strategic shift. In November, when the U.S. closures were first announced, the company confirmed that Canadian operations remain robust and on track for growth.
In fact, 2025 saw Canada poised to achieve its highest number of restaurant openings in the past decade, indicating a contrasting trajectory to the U.S. market. Wendy's has not provided updates on potential future adjustments in Canada, but current plans suggest stability and expansion north of the border.
This move underscores Wendy's efforts to streamline operations and enhance profitability in a competitive fast-food landscape, as it navigates economic headwinds and evolving consumer preferences.
