Wendy's is closing hundreds of U.S. restaurants as domestic sales slide

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]