Fast-food chain Wendy’s plans to close between 5% and 6% of its U.S. locations in the first half of 2026 as part of an effort to streamline operations and improve profitability.
Company leaders first outlined the downsizing strategy during a November earnings call, describing it as a mid-single-digit percentage reduction of its nearly 6,000 restaurants nationwide. In a Feb. 13 earnings update, executives said 28 restaurants had already been closed during the final quarter of 2025 as the company began implementing the plan.
With approximately 5,969 locations operating at the end of last year, a 5% to 6% reduction would translate to roughly 300 to 360 closures. The company has not released a list of specific restaurants slated to shut down.
Executives have said the closures are aimed at addressing consistently underperforming locations that have weighed on franchisees’ financial results. The strategy involves evaluating restaurants individually, with some sites targeted for operational improvements such as updated technology or equipment, and others potentially transferred to new operators. Locations deemed unlikely to improve are expected to be permanently closed.
The restructuring comes after a challenging year for the Dublin, Ohio-based burger chain. In 2025, Wendy’s reported an 11.3% decline in same-store sales during the fourth quarter, along with an 8.3% drop in global systemwide sales for the same period. For the full year, global systemwide sales fell 3.5%, and same-store sales declined 5.6%.
Industry analysts note that restaurant chains across the country have faced headwinds in 2026, including higher labor costs, inflationary pressures and shifting consumer spending habits. Competition within the fast-food sector has intensified as companies adjust pricing strategies and promotional efforts to retain customers.
By narrowing its footprint, Wendy’s leadership has indicated it hopes to concentrate investment and resources on stronger-performing restaurants with greater potential for long-term growth. The move is designed to allow franchise partners to focus on profitable locations while reducing the financial strain of weaker units.
The planned closures represent one of the most significant footprint adjustments for the company in recent years. Despite the reductions, Wendy’s remains one of the largest burger chains in the United States, with thousands of restaurants still operating nationwide.
Source: USA Today