Sales at locations that have been open at least a year fell 10 percent in the October-December period, worse than the 8.5 percent decline analysts had expected, according to FactSet. Same-store sales dropped even further.
The 57-year-old burger chain said it closed 28 U.S. restaurants in the fourth quarter last year. It ended 2025 with 5,969 U.S. locations.
It now expects to close between 5 percent and 6 percent of its U.S. restaurants, or roughly 298 to 358 locations, in the first half of this year. Those closures come on top of 240 U.S. restaurants it shuttered in 2024.
“One learning from 2025 around value, we swung the pendulum too far towards limited-time price promotions instead of everyday value,” interim CEO and CFO Ken Cook said during a conference call with investors.
In January, the company introduced “Biggie Deals,”a permanent value platform with three price tiers: $4 Biggie Bites, $6 Biggie Bags, and an $8 Biggie Bundle. Cook said additional menu innovation, including a new chicken sandwich, is planned this year.
The company said it expects global system-wide sales, including franchised locations, to remain flat this year after falling 3.5 percent in 2025. Shares rose nearly 5 percent in midday trading on Friday.
“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,” Cook said at the time. “The goal is to address and fix those restaurants.”
Under its “Project Fresh” turnaround strategy, Wendy’s has been reviewing each underperforming location, investing in operational upgrades where possible, and closing others.
According to The Food Institute, fast food chains launched more value deals in 2024, from $5 meal bundles to other discounts to appeal to inflation-weary customers trying to trim their food costs. But the trend may be shaped by more than just price. “People taking weight-loss drugs [are] eschewing their usual diet of calorie-laden snacks,” The Food Institute said.