Fast food giant Wendy’s is preparing to close hundreds of underperforming restaurants across the United States as falling sales and changing consumer habits force the company to undergo a major restructuring.
Wendy’s is closing hundreds of US locations — here’s why
The move represents one of the chain’s most significant operational resets in recent years and reflects broader turbulence in the US fast-food industry.
According to recent company information and media reports, Wendy’s plans to close 5 to 6% of its locations during the first half of the year, with additional closures expected to continue into 2026 as part of a broader turnaround strategy. Closures focus primarily on older or underperforming establishments that no longer meet profitability criteria or modern customer expectations.
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The initiative is part of what executives described as a long-term revitalization plan aimed at improving efficiency, updating restaurant formats and redirecting investment to stronger markets.
While the exact numbers vary across reports, industry coverage suggests several hundred U.S. locations could ultimately be affected, even as the company simultaneously opens new restaurants in higher-growth areas.
Sales pressure and changing eating habits
The decision comes at a time of slowing sales growth and increasing competition in the fast food sector. Rising labor costs, inflation and cautious consumer spending have squeezed margins across the industry, particularly at legacy chains operating large franchise chains.
Like many of its competitors, Wendy’s has been struggling with declining customer traffic in certain regions, with diners increasingly opting for lower-priced menus, delivery platforms or smaller fast-food brands. Analysts note that younger consumers are also moving toward perceived healthier or more customized dining options, forcing traditional burger chains to rethink menus and store formats.
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The company’s restructuring efforts — said to be tied to an internal turnaround program — seek to eliminate weaker stores while investing in digital ordering systems, modernized drive-thru layouts and fresh restaurant designs.
Industry observers say this “close and replace” strategy is becoming common among major restaurant groups. Rather than shrinking their overall presence, the chain is trimming older locations to improve average store performance and brand perception.
Wendy’s calls reflect a broader recalibration across the U.S. restaurant industry, which continues to feel the aftershocks of the pandemic era. Thousands of restaurants were permanently closed during the disruption of COVID-19, and operators have since struggled with staff shortages, rising supply costs and erratic demand patterns.
Recent reports suggest that several major chains are rethinking expansion plans and focusing instead on profitability and operational efficiency. Restaurant analysts say scale alone no longer guarantees success; location quality, technology adoption and supply integration have become critical factors.
News this week highlighted that several chains are cutting weaker stores in 2026 to stabilize finances, underscoring how competitive pressures are reshaping the sector.
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wendyBecause many Wendy’s restaurants are franchised, the closures will largely depend on the performance of local operators. Large franchise groups—some operating dozens or even hundreds of locations—are increasingly relying on data analytics to determine which stores will remain viable over the long term.
The company emphasized that the closures will be balanced by new openings, signaling that the strategy is less about contraction and more about repositioning the brand for future growth. Management believes the newer stores, with updated layouts and improved technology, will lead to stronger sales and customer engagement.
Founded in 1969 by entrepreneur Dave Thomas, Wendy’s has grown into one of America’s largest burger chains with thousands of stores worldwide. However, the current restructuring shows how even established brands must constantly adapt to survive changing economic realities.