Wendy’s Sales Dented by Persistent U.S. Struggles

Core Insights - Wendy's experienced a significant decline in same-restaurant sales in the fourth quarter, primarily due to ongoing weaknesses in its U.S. operations, with a drop of 10.1% compared to the expected 8.5% decline [2] - The company's stock fell by 5.3% to $6.89, marking a 13-year low after a nearly 50% decrease over the past year [3] - Wendy's plans to close 5% to 6% of its approximately 6,000 U.S. locations as part of a strategy to improve performance [4] Sales Performance - Same-restaurant sales in the U.S. fell by 11.3%, while international sales decreased by 2% [2] - Fourth-quarter revenue declined by 5.5% to $543 million, slightly above the analysts' forecast of $537.2 million [8] - The decline in U.S. sales was attributed to decreased customer traffic and lower revenue from advertising funds, franchise loyalty, and franchise fees [9] Strategic Initiatives - Wendy's is conducting research to understand consumer perceptions and preferences, indicating a need for more affordable everyday pricing rather than limited-time promotions [5] - The company has already closed 28 restaurants and plans to continue closures in the first half of 2026 [6] - Management anticipates a further decrease in U.S. same-restaurant sales in the first quarter, with expectations for sequential improvement throughout the year [7]