What's happened
Wendy's announced plans to close up to 350 US locations in 2026 due to declining sales and outdated stores. The company reported a 10% drop in global same-store sales in Q4 2025, with US sales falling further. International sales are growing, but domestic challenges persist.
What's behind the headline?
Wendy's current struggles reflect broader challenges in the fast-food industry, where many chains face declining foot traffic and increased competition. The planned closures indicate a strategic shift to focus on modernizing remaining outlets and emphasizing value offerings. The company's emphasis on value menus and international growth suggests a dual approach: cutting losses domestically while expanding abroad. However, the scale of closures signals significant restructuring, which could impact brand perception and market share. The contrast between US and international performance underscores differing consumer behaviors and economic conditions, with domestic consumers becoming more price-sensitive amid economic pressures. Wendy's success in international markets may serve as a blueprint for future growth, but the domestic turnaround will require innovation and reinvestment to regain consumer trust and loyalty.
What the papers say
The articles from AP News and The Independent detail Wendy's aggressive plans to close up to 350 US locations in 2026, citing a 10% decline in global same-store sales in Q4 2025 and a 5.2% drop for the year. Both sources highlight that closures are part of a broader effort to modernize stores and improve profitability, with the company focusing on value offerings and international expansion. Business Insider UK provides additional context, emphasizing that Wendy's is executing 'Project Fresh' to strengthen its foundation amid declining sales, and notes that international sales are growing, with systemwide sales up 8.1%. The coverage contrasts domestic struggles with international growth, illustrating a strategic pivot that aims to stabilize the brand's overall performance. The reporting suggests that Wendy's is in a period of significant transition, with closures and new product launches expected to shape its future trajectory.
How we got here
Wendy's has faced declining sales in the US, with system-wide sales dropping 5.2% in 2025. The company has closed hundreds of locations over recent years, citing outdated stores and shifting consumer preferences. Meanwhile, international sales are improving, highlighting a divergence in performance.
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