Wendy’s to close hundreds of restaurants as sales slump

Wendy’s plans to close hundreds of U.S. restaurants in 2026 as it struggles with falling sales and shifting consumer spending. — Image credit: Peter Dazeley/Getty Images

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Summary

Stores closing

Wendy’s will close hundreds of U.S. restaurants in 2026 as the chain struggles with declining sales and shifting consumer spending habits.

Budgeting trend

Sales fell by nearly 5% last quarter as Americans cut back on dining out and focused more on essentials like groceries and housing.

McDonald's on the up

By contrast, McDonald’s posted a 3% revenue increase during the same period fueled by its renewed focus on value meals and aggressive marketing.

Full story

Wendy’s, the fast-food chain once known for its “Where’s the beef?” ad campaign, plans to close hundreds of U.S. restaurants in 2026 as it struggles with falling sales and shifting consumer spending patterns. Interim CEO Ken Cook stated that the company’s U.S. sales “remain under pressure” and that Wendy’s is “acting with urgency” to stabilize its performance.

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Hundreds of locations to close

Cook said the closures will affect a mid-single-digit percentage of Wendy’s more than 6,000 U.S. restaurants. Fox Business projects that equals roughly 240 locations.

Sales at U.S. stores fell 4.7% in the most recent quarter, while global sales declined 2.6%, driven by a drop in customer visits.

Wendy’s says it is focusing on improving operations at existing restaurants rather than opening new ones. Its new “Project Fresh” initiative aims to boost efficiency, profitability and customer satisfaction.

Value pressures hit the industry

Analysts say Wendy’s struggles reflect a broader pullback in discretionary spending.

“Brands are facing mounting pressure from value-conscious consumers,” said Will Auchincloss, a retail expert with EY-Parthenon. “And if this trend accelerates, we could see a realignment of pricing strategies across the sector.”

Higher food prices, rising rent, and lingering inflation have all pushed consumers to cut back on restaurant visits – a major challenge for chains competing on price.

McDonald’s finds its momentum

While Wendy’s feels the squeeze, McDonald’s is thriving. The fast-food giant reported a 3% increase in revenue last quarter, reaching $7.08 billion, driven by a renewed focus on value meals.

McDonald’s relaunched its “Extra Value Meals” in September and invested $40 million in combo-meal marketing aimed at budget-minded consumers. According to The Wall Street Journal, overall fast-food traffic is down 2.3% this year; however, McDonald’s same-store sales increased by 2.4% in the latest quarter.

CEO Chris Kempczinski said inflationary pressures and beef prices remain headwinds heading into 2026. “This is an environment where you just have to grind it out,” he told investors.

Craig Nigrelli (Anchor/Reporter)

Craig Nigrelli is an anchor and reporter for Straight Arrow News.

Mathew Grisham (Digital Producer) contributed to this report.

Tags: Business, Food prices, Inflation, McDonald’s, store closing, Wendy’s

Why this story matters

Wendy's plans to close hundreds of U.S. restaurants as a response to declining sales and shifting consumer spending, reflecting larger challenges facing the fast food industry in a changing economic environment.

Industry competition

While Wendy's is struggling, competitors like McDonald's are experiencing growth by refocusing on value offerings and adapting to consumer demand.

Economic pressures

Rising food prices, inflation and operational costs are forcing companies to close locations and adjust strategies.

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Behind the numbers

Wendy's plans to close between 200 and 350 locations, representing about 4% to 6% of its approximately 6,000 U.S. restaurants, citing a 4.7% drop in same-store sales and a 2% decrease in overall revenue.

Context corner

Fast food chains across the United States are under pressure as inflation and rising food costs reduce customer traffic, particularly among lower-income consumers. This has led multiple national brands to review and restructure their operations.

Quote bank

"When we look at the system today, we have some restaurants that do not elevate the brand and are a drag from a franchisee financial performance perspective. The goal is to address and fix those restaurants," said interim CEO Ken Cook.