Wendy’s is shifting forward with its plans to shut tons of of eating places, amounting to between 5 and 6% of its whole shops within the U.S., in keeping with its fourth quarter earnings report.
The report, printed on February 13, confirmed that Wendy’s enterprise within the U.S. is at present lagging behind its worldwide efforts. Complete same-store gross sales fell 10.1% over the quarter, pushed by efficiency within the U.S., the place same-stores gross sales have been down 11.3% in comparison with 2% at worldwide places. General, international systemwide gross sales have been $3.4 billion, a lower of 8.3% from the earlier quarter.
In response to Wendy’s interim CEO Kenneth Prepare dinner, a technique the corporate is addressing this pattern is thru ongoing “system optimization,” which incorporates the closure of “persistently underperforming eating places” to permit franchisee companions to deal with extra worthwhile places.
Shares in Wendy’s Co. (Nasdaq: WEN) jumped about 5% in early Friday buying and selling, however the firm’s inventory costs total are nearing lows that haven’t been seen since 2013.
Wendy’s closure updates
Wendy’s first introduced plans to shutter a number of hundred U.S. shops in November 2025. On the time, Prepare dinner instructed buyers that some present eating places “don’t elevate the model” and are “a drag from a franchisee monetary efficiency perspective.” Based mostly on at this time’s replace, a few of these closures have already taken place: Prepare dinner shared that 28 eating places closed throughout the fourth quarter of 2025.
In whole, he added, the corporate expects to shut 5% to six% of its whole U.S. eating places, with all remaining closures slated for the primary half of 2026. On condition that Wendy’s operated about 6,000 U.S. earlier than any of the closures, that implies that it plans to shutter between 300 and 360 places. Prepare dinner stated that the closures have been determined in partnership with franchisees, who have been allowed to flag the eating places they have been serious about to the corporate.
“We established a disciplined course of with our franchisees to method this restaurant-by-restaurant, working with them to make the very best choices that strengthen the system in the long run,” Prepare dinner stated, including, “Clearly, it takes time to work with landlords and obtain what will likely be a win-win for each the franchisees and the Wendy’s firm for these websites that we’re in, in order that’ll take slightly bit longer to see the rental revenue impression versus the closures.”
Wendy’s didn’t instantly reply to Quick Firm’s request for extra data on the particular numbers and places of the closures.
