Wendy’s is moving ahead with its plans to close hundreds of restaurants, amounting to between 5% and 6% of its total stores in the U.S., according to its fourth-quarter earnings report.
Published on February 13, the report shows that Wendy’s domestic business is lagging behind its international efforts. Total same-store sales fell 10.1% over the quarter, driven by low performance in the U.S., where same-store sales were down 11.3% (compared to 2% at international locations). Overall, global systemwide sales were $3.4 billion, a decrease of 8.3% from the previous quarter.
According to Ken Cook, Wendy’s interim CEO, one way the company is addressing the downward trend is through ongoing “system optimization,” which includes the closure of “consistently underperforming restaurants” to allow franchisee partners to focus on more profitable locations.
Shares in Wendy’s Co. (Nasdaq: WEN) jumped about 5% in early trading on February 13, but the company’s stock prices overall are nearing lows that haven’t been seen since 2013.
Wendy’s closure updates
Wendy’s first announced plans to shutter several hundred U.S. stores in November 2025. At the time, Cook told investors that some restaurants “do not elevate the brand” and are “a drag from a franchisee financial performance perspective.” Cook shared that 28 restaurants closed during the fourth quarter of 2025.
Wendy’s operated about 6,000 U.S. stores before any of the closures. Its aim to cut down up to 6% of domestic operations amounts to shuttering roughly 300 to 360 storefronts this year. Cook said the closures were decided in partnership with franchisees, who worked to flag underperforming restaurants.
“We established a disciplined process with our franchisees to approach this restaurant by restaurant, working with them to make the best decisions that strengthen the system in the long term,” Cook said, adding, “Obviously it takes time to work with landlords and achieve what will be a win-win for both the franchisees and the Wendy’s company for those sites that we’re in, so that’ll take a little bit longer to see the rental income impact versus the closures.”
Wendy’s did not immediately respond to Fast Company’s request for more information on the specific numbers and locations of its planned closures.