Wendy’s $WEN ( ▲ 2.89% ) is shrinking its US footprint as traffic collapses, with plans to shut down roughly 5% to 6% of locations, about 300 restaurants, in the first half of 2026. The closures come after a brutal fourth quarter in which same-store sales in the US plunged 11.3%, marking a decline even worse than the early pandemic period.
For the full year, US same-store sales fell 5.6%, highlighting persistent weakness despite various promotional efforts. Interim CEO Ken Cook said the company will focus on eliminating “consistently underperforming” locations as part of a broader turnaround plan.
Customers are simply not showing up
Executives pointed to falling customer traffic as the core problem. Higher menu prices have helped offset some of the damage, but not nearly enough to compensate for fewer visits.
Last year’s strong promotional push, including a high-profile SpongeBob collaboration, also made comparisons tougher this time around. Meanwhile, reduced marketing spending may have further dampened demand.
Turnaround efforts struggle to gain traction
New menu items, including a push into chicken strips late last year, have failed to meaningfully boost foot traffic. The company’s attempt to ride the broader chicken craze has not translated into sustained growth.
Investors remain skeptical. Wendy’s stock has fallen nearly 10% this year, reflecting doubts that store closures alone can revive the brand’s momentum.
More than four decades after its famous “Where’s the beef?” campaign, the bigger question now is whether Wendy’s can bring customers back through the door at all.