Wendy's to close hundreds of restaurants as company looks to focus on value to boost sales
Fast-food giant Wendy's will close hundreds of its U.S. restaurants as it looks to focus on value and boost lagging sales in the domestic market.
In the October through December quarter, the fast-food giant reported same-store sales, or sales at restaurants open for at least one year, declined 11.3% in the U.S.
While Wendy's previously announced late last year its intent to close underperforming restaurants, interim CEO Ken Cook provided more details on Friday during the company's call with investors.
WENDY'S INTRODUCES NEW VALUE MENU WITH 3 PRICE TIERS
Cook said that the company shuttered 28 locations in the fourth quarter of 2025 and expects to close 5% to 6% of its 5,959 restaurants, or 298 to 358 locations, in the first half of this year.
The planned closures occur as the fast-food giant continues its turnaround plan dubbed Project Fresh. Announced in October 2025, Wendy's said the strategy is "designed to revitalize the brand, reignite growth, [and] accelerate profitability."
Part of its plan to win back customers is shifting its focus to value, as many core customers still feel strained by higher living costs.
THIS FAST-GROWING CHAIN SAYS ‘NO DISCOUNTS’ – AND IT’S PAYING OFF
"Learning from 2025 around value, we swung the pendulum too far towards limited-time price promotions instead of everyday value," Cook said during the call.
Rivals like McDonald's have seen success as they hone in on value for customers. The chain, which has focused heavily on value, reported that its U.S. sales rose 6.8% in the fourth quarter, the biggest jump in roughly two years. It's CEO, Chris Kempczinski, told investors on Thursday that McDonald's focused on "delivering leadership in value and affordability, and our efforts are working."
MCDONALD'S BRINGS BACK EXTRA VALUE MEALS TO LURE BUDGET-CONSCIOUS CUSTOMERS
Wendy's joined McDonald's and other fast-food chains in January when it launched a permanent value menu offering called "Biggie Deals." It introduced new customization options across three price points: $4, $6 and $8.
CLICK HERE TO GET FOX BUSINESS ON THE GO
Cook also said 2026 will be a "rebuilding year" for the company, and noted the upcoming rollout of a new chicken sandwich and "cheesy bacon cheeseburger."
"Our focus this year is restoring relevance and rebuilding trust with customers through disciplined execution and marketing," he said.