Core Insights - Wendy's plans to close hundreds of restaurants, representing 5% to 6% of its total U.S. locations, as part of a strategy to address declining domestic performance [1][1] - The company's fourth-quarter earnings report indicates a 10.1% decline in same-store sales, with U.S. locations experiencing an 11.3% drop compared to a 2% decline in international locations [1][1] - Global systemwide sales reached $3.4 billion, reflecting an 8.3% decrease from the previous quarter [1][1] Store Closures - Wendy's initially announced the closure of several hundred U.S. stores in November 2025, with the aim to shut down approximately 300 to 360 locations this year [1][1] - The closures are part of a "system optimization" strategy to allow franchisees to focus on more profitable locations [1][1] - In the fourth quarter of 2025, 28 restaurants were closed, and the decision to close additional locations was made in collaboration with franchisees [1][1] Financial Performance - Shares of Wendy's Co. increased by about 5% in early trading on February 13, although overall stock prices are nearing lows not seen since 2013 [1][1] - The company operated around 6,000 U.S. stores before the planned closures, indicating a significant reduction in its domestic footprint [1][1] - The process of closing underperforming restaurants is expected to take time, particularly in terms of negotiating with landlords for rental income impacts [1][1]

The hamburger restaurant chain sector has a huge obstacle to clear this year, competing against the nation's most popular fast-food concept: fried chicken chains. Fried chicken dining chains, including Raising Cane's Chicken Fingers and Chick-fil-A, began 2026 as the most popular subsector of the fast-food industry, and will lead the sector if the concept continues the trend it set over the last year. Fried chicken restaurant traffic rises Traffic to fried chicken concepts rose 3% in the year ending Se ...

Core Viewpoint - Wendy's reported fourth-quarter earnings that slightly exceeded analyst expectations, but the 2026 outlook fell short of Wall Street forecasts Financial Performance - Adjusted EPS for the fourth quarter was $0.16, beating the consensus estimate of $0.15 [1] - Revenue reached $543 million, surpassing expectations of $537.55 million [1] - For full-year 2025, adjusted EPS was $0.88, down 12% from $1.00 in 2024 [4] Sales and Growth - Global systemwide sales declined 8.3% to $3.4 billion in the quarter [2] - Same-restaurant sales fell 10.1% globally and 11.3% in the United States [2] - International markets showed strength with systemwide sales increasing 6.2% in the fourth quarter and 8.1% for the full year [3] - Wendy's added 34 net new restaurants in the quarter, totaling 157 net additions for the year, representing 2.2% growth [3] Margin and Cost Factors - U.S. company-operated restaurant margin declined to 12.7% from 16.5% a year earlier due to weaker traffic, commodity cost inflation, and higher labor expenses [3] Future Guidance - For 2026, Wendy's guided to earnings per share of $0.56 to $0.60, significantly below analyst expectations of $0.85 [2] - The company projected flat global systemwide sales growth for the upcoming year [2]

Management attributed the 8.3% global system-wide sales decline in Q4 primarily to a significant reduction in U.S. marketing spend and a difficult year-over-year comparison against the prior year's SpongeBob collaboration. The 'Project Fresh' turnaround plan was introduced to address operational drift and a previous over-reliance on short-term discounting versus long-term brand building. A comprehensive consumer segmentation study revealed that Wendy's had neglected its core quality differentiator, le ...

Core Insights - Wendy's is planning to close approximately 5% to 6% of its US restaurants, translating to about 240 to 360 locations, following an 11.3% sales decline in its home market [1][10] - The company reported a 10% drop in global comparable sales for the fourth quarter, with the US market experiencing the largest decline [2][10] - Adjusted EBITDA for the fourth quarter was $113.3 million, slightly exceeding analyst expectations, while adjusted earnings per share were 16 cents, beating forecasts [4][5] Financial Performance - Revenue for the fourth quarter was $540.75 million, aligning closely with forecasts [5] - For the full year, Wendy's reported adjusted EBITDA of $522.4 million and adjusted earnings of 88 cents per share [5] - The company projected 2026 adjusted EBITDA between $460 million to $480 million and adjusted EPS of 56 cents to 60 cents, significantly below analyst expectations of about 86 cents per share [6] Market Reaction - Wendy's shares fell sharply in premarket trading due to the weak earnings outlook and restaurant closures [4][6] - By early Friday afternoon, shares rebounded by 3.65% to $7.54 after trading within a range of $7.08 to $7.93 [7] Strategic Decisions - The company emphasized a strategy of system optimization to enhance franchisee economics and customer experience [7] - Closing underperforming restaurants is aimed at allowing franchisees to focus on locations with greater potential for profitable growth [8] Customer Sentiment - Customers have expressed dissatisfaction with rising prices and perceived declines in food quality, leading to a decrease in visits to Wendy's [12][13] - Complaints include shrinking portion sizes and changes in ingredients, which have contributed to a loss of customer loyalty [12][13]

Wendy's closing stores 2026: hundreds of locations on doomed list - Fast Company[Innovation by Design Awards—Early-Rate Deadline This Friday, 2/13. Apply Now!]LOGIN[SUBSCRIBE]- [INNOVATION FESTIVAL]- [Video]- [Podcasts]- [Games]- [Work Life]- [Leadership]- [News]- [Design]- [Tech]- [Premium]| [Custom Studio]- [Texas A&M University]- [IBM]BY [Grace Snelling]Listen to this Article [More info]0:00 / 0:00[Wendy's] is moving ahead with its plans to close hundreds of restaurants, amounting to between 5 and 6% of ...

You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. Wendy’s fourth quarter wasn’t expected to be a home run. The chain struggled throughout 2025 as it navigated a bevy of leadership changes. In October, interim chief executive officer Kenneth Cook implemented a Project Fresh turnaround plan that included the targeted closure of about 5% to 6% of its U.S. system, or about 300 U.S. restaurants.  The company was also lapping a strong Q4 2024 from its successful SpongeB ...

Wendy’s (WEN) is closing several hundred U.S. restaurants and increasing its focus on value after a weaker-than-expected fourth quarter. The Dublin, Ohio-based company said Friday that its global same-store sales, or sales at locations open at least a year, fell 10% in the October-December period. That was worse than the 8.5% drop expected by analysts polled by FactSet. U.S. same-store sales fell even further in the fourth quarter. Wendy’s said late last year that it planned to close underperforming U.S. ...

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Core Viewpoint - Wendy's is facing significant challenges in its US operations, leading to plans for closing up to 350 locations due to declining sales and profitability [1][2]. Group 1: Sales Performance - Full-year, system-wide US sales decreased by 5.2% in 2025, with same-restaurant sales down 5.6% year over year [1]. - International sales are performing better, with system-wide sales increasing by 8.1% and same-restaurant sales up 1.3% year over year [3]. Group 2: Operational Changes - The company plans to close 5% to 6% of its approximately 6,000 US locations during the first half of 2026 as part of its turnaround strategy, Project Fresh [2]. - The closures follow a series of hundreds of location shutdowns last year, which were attributed to technological obsolescence [3]. Group 3: Market Reaction - Despite the announcement of closures, Wall Street's reaction to Wendy's earnings report was muted, although the stock price has declined by about 8.5% in 2026 and nearly 50% compared to the previous year [3].