Wendy’s to close hundreds of U.S. restaurants amid declining traffic and rising costs

Fast-food giant Wendy's is preparing to shut down hundreds of underperforming restaurants across the United States as declining sales and shifting consumer habits force the company into a major restructuring effort.

According to recent company disclosures and media reports, Wendy’s plans to close between 5% and 6% of its locations during the first half of the year, with additional closures expected to continue into 2026 as part of a broader turnaround strategy. The closures are aimed primarily at older or underperforming outlets that no longer meet profitability benchmarks or modern customer expectations.

The initiative forms part of what executives have described as a long-term revitalisation plan focused on improving efficiency, updating restaurant formats and redirecting investment towards stronger markets.

While exact figures vary across reports, industry coverage indicates that several hundred U.S. locations could ultimately be affected, even as the company simultaneously opens new restaurants in higher-growth areas.

Like many competitors, Wendy’s has faced declining customer traffic in certain regions, with diners increasingly opting for value menus, delivery platforms or smaller fast-casual brands. Analysts note that younger consumers are also shifting towards perceived healthier or more customised dining options, forcing traditional burger chains to rethink menus and store formats.

The company’s restructuring effort — reportedly linked to an internal turnaround programme — seeks to eliminate weaker outlets while investing in digital ordering systems, modernised drive-through layouts and refreshed restaurant designs.

Industry observers say this “close-and-replace” strategy is becoming common among major restaurant groups. Rather than shrinking overall presence, chains are pruning older locations to improve average store performance and brand perception.

Wendy’s challenges mirror a broader recalibration across the U.S. restaurant industry, which continues to feel aftershocks from the pandemic era. Thousands of restaurants closed permanently during COVID-19 disruptions, and operators have since struggled with staffing shortages, rising supply costs and volatile demand patterns.

Recent reports suggest several major chains are reassessing expansion plans and focusing instead on profitability and operational efficiency. Restaurant analysts argue that scale alone no longer guarantees success; location quality, technology adoption and delivery integration have become critical factors.

News coverage this week highlighted that multiple chains are trimming weaker outlets in 2026 to stabilise finances, underscoring how competitive pressures are reshaping the sector.

wendyBecause many Wendy’s restaurants are franchise-owned, the closures will largely depend on local operator performance. Large franchise groups — some operating dozens or even hundreds of locations — have increasingly relied on data analytics to determine which stores remain viable long term.

The company has stressed that closures will be balanced by new openings, signalling that the strategy is less about contraction and more about repositioning the brand for future growth. Executives believe newer outlets with updated layouts and improved technology will drive stronger sales and customer engagement.

Founded in 1969 by entrepreneur Dave Thomas, Wendy’s grew into one of America’s largest burger chains, with thousands of outlets worldwide. However, the current restructuring shows how even established brands must continually adapt to survive changing economic realities.