Wendy’s reported its largest decline in same-restaurant sales in over five years, prompting the fast-food chain to announce the closure of hundreds of locations.
Interim CEO Ken Cook reported Friday that the company will shut down 5%-6% of its U.S. restaurants, according to Axios.
The closures include the 28 locations that closed in the fourth quarter of 2025, with the rest planned to shut down in the first half of 2026, Cook said.
The move follows the July departure of CEO Kirk Tanner, who left the company to take a job with The Hershey Company after only 18 months in the role. Wendy’s has not yet named a permanent replacement, Restaurant Business reported.
Cook noted that Wendy’s is currently “working with our franchisees to evaluate restaurants on a store-by-store basis and make collaborative decisions to optimize performance across the U.S. system.”
Amid the decline, the company is offering franchisees greater flexibility when it comes to breakfast hours because “we recognize it may not work in every restaurant,” Cook added.
He believes this will give the “greatest potential for growth,” noting that the “large majority of the system is going to stay in breakfast.”
The numbers
Wendy’s Friday report detailed an 11.3% decline in U.S. same-restaurant sales for the fourth quarter.
Jonathan Maze, editor-in-chief of Restaurant Business magazine, shared on social media that it was the chain’s worst quarterly performance since at least 2007.
While Wendy’s is floundering, rival McDonald’s reported a 6.8% increase in same-store sales in the U.S., according to MarketWatch.
McDonald’s has made moves to appeal to price-conscious consumers, offering $5 and $8 meal promotions, though the company noted it expects 2026 to “remain challenging.”
Wendy’s outlook isn’t all doom and gloom. Despite an 8.3% drop in 2025 and full-year profits that were below Wall Street predictions, the brand is attempting a turnaround, according to MarketWatch.
To combat dropping sales, the chain hired former Taco Bell and Yum Brands CEO Greg Creed as a marketing consultant, according to Restaurant Business.
Wendy’s also plans to innovate its menu a bit more in 2026, with the debut of a new Cheesy Bacon Cheeseburger, upgraded chicken sandwiches and a new Chicken Ranch Wrap in the coming months.