Wendys closes US restaurants and focuses on value to turn around falling sales

Published: Friday, February 13, 2026 at 5:49 pm

Wendy's to Close Hundreds of US Restaurants, Focus on Value to Combat Sales Decline

Wendy's is taking decisive action to address a disappointing fourth quarter, announcing plans to close hundreds of underperforming U.S. restaurants and shift its focus towards value offerings. The fast-food chain, based in Ohio, reported a significant drop in global same-store sales, which fell 10% during the October-December period. This decline exceeded analyst expectations, which had predicted an 8.5% decrease.

The company is accelerating its closure strategy, having already shuttered 28 locations in the fourth quarter of the previous year. Wendy's ended the year with 5,969 U.S. restaurants. Looking ahead, the company anticipates closing between 298 and 358 additional U.S. locations in the first half of this year, representing approximately 5% to 6% of its U.S. footprint. These closures follow the 240 U.S. restaurant closures in the prior year.

In an effort to regain customer traction, Wendy's is joining competitors like McDonald's and Taco Bell in prioritizing value-driven promotions. The company acknowledges that its previous approach, which leaned heavily on limited-time price promotions, may have been misdirected. To address this, Wendy's launched a permanent Biggie Deals value menu in January, offering three price tiers: $4 Biggie Bites, $6 Biggie Bags, and an $8 Biggie Bundle. The company also plans to introduce new products, including a new chicken sandwich, later this year.

Despite the sales challenges, Wendy's fourth-quarter revenue of $543 million surpassed analyst forecasts of $537 million. The company remains optimistic about its turnaround strategy in the U.S. and its international expansion plans, expressing confidence that these initiatives will help stabilize sales this year. Wendy's projects that global systemwide sales will remain flat for the current year, after a 3.5% decrease in the prior year. Investors responded positively to the news, with Wendy's shares experiencing a nearly 5% increase during mid-day trading.

BNN's Perspective: While the restaurant industry is competitive, Wendy's appears to be taking the right steps to address its current challenges. The focus on value, coupled with strategic restaurant closures, could be a winning combination. However, the success of this strategy will depend on effective execution and the ability to attract and retain customers in a challenging economic environment.

Keywords: Wendy's, restaurant closures, sales decline, value menu, Biggie Deals, same-store sales, revenue, fast food, turnaround, financial performance, stock price.

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