Fast-food chain Wendy's detailed plans to close 5% to 6% of its U.S. stores and focus on value after sales declined in the fourth quarter.
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Same-store sales at Wendy’s nearly 6,000 U.S. locations declined 11.3% during the quarter, largely due to a decline in traffic, QSR reported. The brand’s global sales declined 3.5% last year.
Interim CEO Ken Cook said the company will double down on Project Fresh, its plan to revitalize the brand, close underperforming stores and strengthen its financial position.
“We know that we have a lot of work to do to improve performance,” Cook said during the Friday call.
Wendy’s announced plans to close hundreds of stores late last year. Including the 28 restaurants that closed during the fourth quarter, Wendy’s expects to shutter about 300 to 360 stores during the first half of this year.
This comes on top of Wendy’s 240 stores closed in 2024, saying at the time that many of its locations were outdated, The Associated Press reported.
The fast-food chain known for its hamburgers plans to focus on everyday value rather than short-term promotions. This could help it win back inflation-weary customers, which rivals like McDonald’s and Taco Bell are also trying to capture, the AP reported.
McDonald’s U.S. sales grew 6.8% year-over-year in the fourth quarter as value meals continued to resonate with customers.
Wendy’s plans to keep its Biggie Deals platform, which offers $4, $6 and $8 price points, Cook said.
In 2025, “we swung the pendulum too far towards limited-time price promotions instead of everyday value,” he said.
Yum Brands Inc., the parent company of Pizza Hut, announced plans this month to close 250 U.S. locations this year, representing about 4% of its domestic stores.
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