Fast-food giant Wendy's is making a bold move, and it's not without controversy. They're closing doors, but not without a plan.
Wendy's has revealed its strategy to close down a significant number of its stores, a decision that will affect 5% to 6% of its restaurants by mid-2026. This move is part of a turnaround plan announced in late 2025, aiming to improve the company's financial health. But here's where it gets interesting: the plan involves shutting down hundreds of stores, with 28 already closed in the fourth quarter of 2025.
According to interim CEO Ken Cook, these closures target underperforming restaurants, allowing franchisees to redirect their efforts to more profitable locations. This strategy is a response to Wendy's US sales slump, with same-store sales dropping 11.3% in the last quarter of 2025 and 5.6% for the entire year.
The company attributes this decline to an overemphasis on limited-time promotions. To counter this, Wendy's is shifting its focus to everyday value, introducing new Biggie meal deals in January 2026, such as the $4 Biggie Bites, $6 Biggie Bag, and $8 Biggie Bundle. These offerings cater to cost-conscious consumers who are cutting back on dining out due to inflation.
Interestingly, despite the sales slump, Wendy's new chicken tenders, 'Tendys', have been a bright spot, performing well during this challenging period.
But what does this mean for the future of Wendy's and its customers? Will the closures improve the overall customer experience, or is this a sign of more significant changes to come? The company's strategy is a risky one, and it remains to be seen if it will pay off. What do you think? Is Wendy's making the right call, or is there a better path to revival?