Wendy's announced it will close hundreds of restaurants across the United States after reporting a sharp drop in sales and a weak forecast for 2026.
The company announced that it intends to close approximately 5% to 6% of its US locations during the first half of 2026. In total, that would amount to an estimated 240 to 360 restaurants nationwide.
The closures follow an 11.3% decline in US same-store sales during the fourth quarter, the company's steepest drop at home in years, NY Post reported.
Global comparable sales fell 10% during the same period. Several locations have already closed, including restaurants in West Lafayette, Indiana; Stockton, California; and Langhorne, Pennsylvania.
Investors reacted quickly. Wendy's shares fell sharply in premarket trading after the company projected lower earnings for 2026.
While the stock later recovered and traded at $7.54 by early Friday afternoon, the initial drop reflected concern about the company's outlook.
For the fourth quarter, Wendy's reported adjusted earnings per share of 16 cents, beating expectations of 14 to 15 cents.
Revenue totaled $540.75 million, roughly in line with forecasts. Adjusted EBITDA reached $113.3 million, slightly above estimates.
For the full year, adjusted EBITDA was $522.4 million, and earnings per share came in at 88 cents.
Wendy’s to shutter hundreds of US restaurants — these locations are already closed https://t.co/HU7hLPbSxY pic.twitter.com/HgdiMDovCn
— New York Post (@nypost) February 13, 2026
Wendy's Shares Drop on Weak 2026 Profit
However, the 2026 forecast disappointed Wall Street. Wendy's expects adjusted EBITDA between $460 million and $480 million and earnings per share between 56 and 60 cents — far below analyst expectations of about 86 cents per share.
That weaker outlook overshadowed the better-than-expected quarterly profit.
In a statement, the company said its strategy includes "system optimization," meaning it wants the right number of restaurants in the right places.
"By closing consistently underperforming restaurants, we're enabling our franchisee partners to increase focus on locations with the greatest potential for profitable growth," the chain said.
Some analysts believe rising prices played a role in the sales slump. William Stern, founder of fintech firm Cardiff, said customers may have reached their limit.
"For two years, these companies treated the customer like an infinite ATM," he said. "Well the ATM is empty now."
Customers have shared similar views online, saying meals cost more while app deals have become less generous. Some also complained about smaller portions and ingredient changes.
To win back diners, Wendy's is focusing more on value. According to AP, the company recently introduced permanent "Biggie Deals" with $4, $6 and $8 options and plans to launch new menu items, including a chicken sandwich, later this year.
Originally published on vcpost.com
